Solve the problems using Excel formula

For A1 X V fx A B C D E F G H K P-3: Dilution effect of stock issue (LO15-3) 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 the corporation. a. What is the immediate dilution potential for this new stock issue? Assume that American Health Systems can earn 9 percent on the proceeds of the stock issue in time to include them in the current year's results. Calculate earnings per share. C. Should the new issue be undertaken based on earnings per share? Given: Shares Additional New Shares Relative to Shareholder W N Outstanding Earnings EPS Issuance Outstanding New EPS Dilution Price CA a ) 6,400,000 10,000,000 1,700,000 30 Revenue from Sale of Shares: % Capital Gains from Sale of Shares: 9.0% Additional Earnings (capital gains): CO 00 New Earnings Amount: 10 b) EPS accounting for gains from share sales: Relative to Corporation 12 c) Yes, ... 13 P-4: Dilution effect of stock issue (LO15-3) American Health Systems 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, which can only be issued at $18 per share. a. Assume that American Health Systems can earn 6 percent on the proceeds. Calculate earnings per share. b. Should the new issue be undertaken based on earnings per share? 14 15 Given: Shares Additional New Shares On Own 16 Outstanding Earnings EPS Issuance Outstanding Price 6,400,000 10,000,000 1,700,000 18 a) 19 Revenue from Sale of Shares: 20 % Capital Gains from Sale of Shares: 6.0% 21 Additional Eamings (capital gains): 22 New Earnings Amount: 23 b ) EPS if including share sales in the current period: 25 C)