A company with 2 million shares outstanding and no debtcurrently has a net income of $ 4
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- A company with million shares outstanding and no debtcurrently has a net income of $ million. The company is considering aninvestment that will cost $ million and increase net income by $ The companys stock sells for $ per share but its book value per share is $Assume a constant priceearnings ratio.Does dilution take place?What would the new net income for the company have to be for the stock price to remain unchanged?
Related Book For
Linear Algebra And Its Applications
ISBN: 9781292351216
6th Global Edition
Authors: David Lay, Steven Lay, Judi McDonald
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