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# 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?

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