3. Great White Savings and Loan currently has 7.5 million in shares outstanding and will report earnings of 22.5 million in the current year. The company is considering the addition of 1 million additional shares of stock that will net the company $25 per share. a. What is the immediate dilution for this new share issue? b. If they can earn 10% on the proceeds of the share issue in time to include it in the current years results. Should the new issue be undertaken based on earning per share

4. Newbond has a bond outstanding with semi annual payments of $60 and a market price of $950. The bond matures in 15 years. Find the following(note all rates are semi-annual j2): a. The coupon yield. b. The current yield. c. The yield to maturity. d. The yield the investor would realize if they reinvest coupon payments at 8% (holding period return)