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American Health Systems has 5,200,000 shares of stock outstanding and will report earnings of $18 million in the current year. The company is considering the

American Health Systems has 5,200,000 shares of stock outstanding and will report earnings of $18 million in the current year. The company is considering the issuance of 1,800,000 additional shares, which can only be issued at $25 per share.

a. Assume that American Health Systems can earn 8 percent on the proceeds. Calculate earnings per share.

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