What will be the eps be after the new equity issue

Reference no: EM133326461

Question: UBC wants to expand. The company currently has 8 million shares outstanding and no debt. The stock sells for $60 per share, but the book value per share is $40. The firm's net income is currently $9 million. The expansion will cost $32 million, and it will increase net income by $400,000. Assume the firm issues new equity to fund this expansion while maintaining a constant price-earnings ratio. What will be the EPS be after the new equity issue?

Reference no: EM133326461

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