The Houston Corp needs to raise money for an addition to its plant. It will issue 300,000
Question:
a) Compute the potential dilution from this new stock issue
b) Compute the net proceeds to Houston Corp
c) What rate of return must be earned on the net proceeds so that no dilution of earnings per share occurs?
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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