10. Womenpower Temporaries, Inc., has earnings of $4.5 million with 1.8 million shares outstanding before a public distribution. Four hundred thousand shares will be included in the sale, of which 250,000 are new corporate shares, and 150.000 are shares currently owned by Julie Lipner, the founder and CEO. The 150.000 shares that Julie is selling are referred to as a secondary offering and all proceeds will go to her.

The net price from the offering will be $22.50 and the corporate proceeds are expected to produce $2 million in corporate earnings.

a. What were the corporation’s earnings per share before the offering?

b. What are the corporation’s earnings per share expected to be after the offering?