Show eastland new balance sheet after the company sells

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The balance sheet and income statement of Eastland Products, Inc., are as follows:

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Income Statement for Year Ended December 31, 2006
(in Millions of Dollars)
Sales ......... $120
Cost of sales ...... 80
EBIT ......... $40
Interest ........ 5
EBT ......... $35
Taxes (40%) ....... 14
Net income (EAT) .... $ 21
Additional Information
Total dividends ......... $10 million
Market price of common stock ..... $32 a share
Number of common shares issued .... 5 million

Using these data, determine the following:
a. Earnings per share
b. Price-to-earnings ratio
c. Book value per share
d. Market-to-book ratio
e. How much of the retained earnings total was added during 2006?
f. Show Eastland's new balance sheet after the company sells 1 million new common shares in early 2007 to net $30 a share. Part of the proceeds, $10 million, is used to reduce current liabilities, and the remainder is temporarily deposited in the company's bank account. Later, this remaining amount (along with additional long-term debt financing) will be invested in new manufacturingfacilities.

Reference no: EM131119844

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