The hamilton corporation has 2 million shares of stock, Ask an Expert

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The Hamilton Corporation has 2 million shares of stock outstanding and will report earnings of $6,790,000 in the current year. The company is considering the issuance of 1 million additional shares which can only be issued at $39 per share.

a. Assume the Hamilton Corporation can earn 6.00 percent on the proceeds. Calculate the earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.)

b. Should the new issue be undertaken based on earnings per share?

Yes

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92059272

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