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19.13 or 19.04 for last answer isnt correct The Presley Corporation is about to go public. It currently has altertax earnings of $1?.[l and 2.100.0{10

19.13 or 19.04 for last answer isnt correct

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The Presley Corporation is about to go public. It currently has altertax earnings of $1?.[l and 2.100.0{10 shares are owned by the present shareholders {the Presley family]. The new public issue will represent 500,00!) new shares. The new shares will be priced to the public at $25 per snarer with a 5 percent spread on the offering price. There will also be REQDDD in out-ofpocicet costs to the corporation. a. Compute the net proceeds to the Presley Corporation. Net proceeds 5 i'lriEDD a b. Compute the EPS Immediately before the stock Issue. {Round the Intermediate calculations and the final answer to 2 decimal places} as 5-9 c. Compute the EPS Immediately alter the stock issue. [Round the intermediate calculations and the nal answer to 2 decimal places] as $-a cl. Determine what rate of return must be earned on the net proceeds to the corporation so that there will not be a dilution in EPS during the year of going public. {Round the Intermediate calculations and the final answer to 2 decimal places] Rate of return a a; e. Determine what rate of return must be earned on the proceeds to the corporation so that there will be a 5 percent increase in EPS during the year of going public. {Round the intermediate calculations and the nal answer to 2 decimal places} Rate of return a BE

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