Answer using excel solutions.

A, c. D. 2 D IAurnc that 1,200.000 new corporate shares will bc issued through thc (TO. What will earnings per share be immediately aftcr thc public offering? Schwab dctcrmincs that thc appropriatc pricc-carnings ratio for KN 14. What is thc initial pricc for thc Corporation? Assuming an underwriting sptcad of 4 pcrccnt and out-of-pocket costs Of what will be thc nct procccdg to thc corporation? What return must the corporation carn on thc net proceeds to equal thc earnings per gharc bcforc Ihc offcring? 'low does this comparc with thc surrcnt return on the balance sheet's total equity? Since Shwab and KN are still moving pieces around, assume that 40% of thc initial sharc dtribution belongn to curront Atockholdcr and 60% arc new shares. How might this choice affect the earnings per share at thc III)? What will the initial market price ot thc stock be? Asumc thc same price-carnings ratio Based on your analyses in 'A' and as a Charles Schwab representative, what recommendation would you offer to KN Corporation? Explain ' your response. .6 iBelow is KN*s abridged financial 19 20 21 22 24 26 27 28 29 30 31 32 33 35 36 37 38 39 41 43 46 48 49 50 56 59 60 : Income Statement Balance Sheet Assets Debt & Equity Sales Cost of Goods Sold Gross front S, G, & A Expenses EBITDA Depreciation Exp EBIT Interest lp Taxes EAT Current Assets: Cash St Investments Acct Receivable Inventory Total Current Asscts PP&E Accumulated Depr iNctPP&E i Total Assets Current Liabilities: Accot Payablc , Notes Payable Total Current Liabilities Long-term Debt: : Total Debt - Equity: Common Stock (sec notc below) Capital in excess of par Retained Earnings jT01al Equity ) Total Debt & Equity s s s s s s s s s s S s s s s s 31,240.00000 18.440,OOOOO 950,00000 3,520.00000 561200000 750,000.00 130.00000 -q S A,ooo.ooo.oo 13,970.00000 29 15000000 s s s s s 4,300.00000 i 3550.00000 13.470.ooooo 6,300.000.00 7.580.ooo.oo 15,680.00000 29 15000000 i Shares or common stock is 3.6 million