What are the earnings per share and price-earnings ratio

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Reference no: EM132838741

Walker Machine Tools has 6.7 million shares of common stock outstanding. The current market price of Walker common stock is $76 per share rights-on. The company's net income this year is $23.50 million. A rights offering has been announced in which 670,000 new shares will be sold at $70.50 per share. The subscription price plus nine rights is needed to buy one of the new shares.

Problem a. What are the earnings per share and price-earnings ratio before the new shares are sold via the rights offering?

Reference no: EM132838741

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