What is the immediate dilution potential

Reference no: EM13268523

American Health Systems currently has 6,400,000 shares of stock outstanding and will report earnings of $10 million in the current year. The company is considering the issuance of 1,700,000 additional shares that will net $30 per share to to corporation.

A. What is the immediate dilution potential for this new stock issue?

B. Assume that the American Health Systems can earn 9% on the proceeds of the stock issue in time to include them in the current years results. Calcualte earnings per share. Should the new issue be undertaken based on earnings per share?

Reference no: EM13268523

Questions Cloud

Calculate the output dc voltage and the ripple voltage : The center-tap to high peak voltage to each side is 22.0 V. Two silicon diodes are used to make a full-wave rectifier. Calculate the output DC voltage and the ripple voltage

Find what is the molarity of the resulting solution : 1- Use the half-reaction method to balance the equation Ca(s) +Cl2(g) --> CaCl2(s). 2-A sample of sodium chloride, NaCl, weighing 0.0678 g is placed in a 25.0-mL volumetric flask. Enough water is added to dissolve the NaCl, and then the flask is ..

Compute the ionization energies of an h atom : The ionization energies of rubidium and silver are 4.18 and 7.57 eV, respectively. Calculate the ionization energies of an H atom with its electron in the same orbitals as in these two atoms and account for the difference in values

Explain the role of organization culture in a company : Explain the role of Organization Culture in a company with regard to both the CEO and employees. How would organization culture be related to social responsibility?

What is the immediate dilution potential : Assume that the American Health Systems can earn 9% on the proceeds of the stock issue in time to include them in the current years results. Calcualte earnings per share. Should the new issue be undertaken based on earnings per share?

Explain what is the mass of the displaced water : The mass of the displaced fluid is equal to the mass of the object in air, 50.0 g, minus the apparent mass of the object in the fluid, 5.6 g: What is the mass of the displaced water

Find total dissipated power if 3 resistors identical to r0 : he power dissipated in the resistor R0 is 24 W when connected to a 10V source. Find the total dissipated power if 3 resistors identical to R0 are connected in series to a 10V source.

Prepare the pro forma statements : Proform a income statement Pro forma balance sheet Sales $ Assets $ Debt $ Costs Equity Net income $ Total $ Total $ Determine the external financing needed. (Negative amount should be indicated by a minus sign.) External financing needed $.

Explain how you can communicate the results : Generate a list of questions you will ask during the interview such as teaching strategies, theories, technology, and evaluation techniques.

User Account

All Pages