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American Health Systems has 6 , 5 0 0 , 0 0 0 shares of stock outstanding and will report earnings of $ 1 2

American Health Systems has 6,500,000 shares of stock outstanding and will report earnings of $12 million in the current year. The company is considering the issuance of 1,300,000 additional shares, which can only be issued at $30 per share.
a. Assume that American Health Systems can earn 7 percent on the proceeds. Calculate earnings per share

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