What is the immediate dilution effect of new stock issue

Reference no: EM13305714

The hamilton corp currently has 4 million shares of stock outstanding and will report earnings of $6,000,000 in the current year. The company is considering the issuance of 1 million additional shraes that will net $30.00 per share to the corporation.

1. What is the immediate dilution effect of this new stock issue?

Reference no: EM13305714

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