$**$STOCK ISSUE$**$ Use the following information to answer the next four questions: The Houston Corp, needs to raise money for an addition to its plant. It will issue $300,000$ shares of new common stock priced at $$60$ per share. There will be $8\mathrm{.}5\%$ spread on the offer price. Registration costs of $$150,000$ will be paid out of the proceeds received from the new share issue. Presently Houston Corp. has earnings of $$3$ million and $750,000$ shares outstanding. $1/$The potential dilution of EPS from this new share issue is: a$.$$$2\mathrm{.}86$ b$.$$$3\mathrm{.}00$ c$.$$$4\mathrm{.}00$ d$.$$$1\mathrm{.}142/$ The net price per share after spread $($before registration costs$)$ to Houston is: a$.$$$58\mathrm{.}00$ b$.$$$5\mathrm{.}10$ c$.$$$54\mathrm{.}90$ d$.$$$56\mathrm{.}203/$Net Proceeds to Houston Corp. are: a$.$$$150,000,000$ b$\mathrm{.}16,320,000$ c$.$$$182,750,000$ d$.$$$15,432,0004/$For earnings per share NOT to be diluted, the return on net proceeds is required to be: a$\mathrm{.}8\mathrm{.}92\%$ b$\mathrm{.}12\mathrm{.}14\%$ c$\mathrm{.}5\mathrm{.}34\%$ d$\mathrm{.}7\mathrm{.}35\%$