[10 points in total; 2.5 points each.] Suppose you are given the following information about CRS Corporation for a quarter:

Total revenues: $800 million;

Cost of goods and services sold: $500 million;

Sales, General & Administrative expenses (SG&A): $200 million;

CRS owns a building that is not in use now, but which the company plans use it in the future to house the machinery of a new project. There is another company that has requested to lease the building for $500,000 per month.

CRS has 9 million shares outstanding.

Answer the questions below:

What is CRS earnings per share? (Note: this is based on accounting rules).

Suppose that in the following quarter, CRS total revenues and cost of goods and services increased by 10 percent, and that the firm sold 6 million more shares to investors. What is the impact of these changes on CRS earnings per share? (Compare the situation before and after the changes.). Can you conclude that the changes above have contributed to the maximization of the wealth of CRS shareholders? Briefly explain)