Reference no: EM131842911
Eaton, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $40 per share, but the book value per share is $10. Net income is currently $3.2 million. The new facility will cost $50 million, and it will increase net income by $760,000. Assume a constant price-earnings ratio.
a-1. Calculate the new book value per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Book value $
a-2. Calculate the new total earnings.
Total earnings $
a-3. Calculate the new EPS. (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
EPS $ per share
a-4. Calculate the new stock price. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Stock price $
a-5. Calculate the new market-to-book ratio. (Do not round intermediate calculations and round your final answer to 4 decimal places, e.g., 32.1616.)
Market-to-book ratio
b. What would the new net income for the company have to be for the stock price to remain unchanged? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to nearest whole dollar amount, e.g., 32.)
Net income $
Remaining number of interest payments
: You have just been offered a bond for $880.10. If the par value is $1,000, how many interest payments remain?
|
Write an analysis about video federalist vs anti-federalists
: Write an analysis about the video Federalist vs. Anti-Federalists. why, who, what, where, when, how and the resulting impact, either positive or negative.
|
Describe the pros and cons of using sns
: Examples how you can incorporate the principles from the text into his or her corporate aspirations (specific examples)
|
Why did transition from indenture servitude to slavery occur
: The British colonization of Virginia, Maryland, the Carolinas, and Georgia in the 1600s was marked by an extensive demand for agricultural labor.
|
Calculate the new book value per share
: Calculate the new book value per share. Calculate the new total earnings. Calculate the new market-to-book ratio
|
Report on how you worked to produce your MYOB assignment
: ACC203 Accounting Information Individual Assignment. You have to provide an individual work report on how you have worked to produce your MYOB assignment
|
Tell us about specific people
: Also, tell us about specific people (famous or not) who are virtuous in your eyes. Or, if you see yourself as virtuous, you can write response
|
Analyze views of women reproduction solutions
: Analyze views of women's reproduction solutions in the 19 th Century and interpret their historical and contemporary impact.
|
What is the operating cash flow for project
: The applicable tax rate is 32 percent. What is the operating cash flow for this project?
|