Answered step by step
Verified Expert Solution
Question
1 Approved Answer
# 3. Currently, American Health Systems has 6 million outstanding capital shares and this year will declare profits of $15 million. The company considers the
# 3. Currently, American Health Systems has 6 million outstanding capital shares and this year will declare profits of $15 million. The company considers the issuance of 1.5 million additional shares, each of which will generate a net amount of $50. A) What is the potential immediate dilution of this new share issue? B) Assume that the company can earn 12% on the proceeds of the issuance of shares to Time to include it in this year's results. Should I start the new issue? Based on profits per share?
# 3. Currently, American Health Systems has 6 million outstanding capital shares and this year will declare profits of $15 million. The company considers the issuance of 1.5 million additional shares, each of which will generate a net amount of $50.
A) What is the potential immediate dilution of this new share issue?
B) Assume that the company can earn 12% on the proceeds of the issuance of shares to
Time to include it in this year's results. Should I start the new issue?
Based on profits per share?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started