Candy, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $30 per share, but the book value per shar is $12. Net income is currently $3.3 million. The new facility will cost $30 million, and it will increase net income by $600,000. Assume a constant price-earnings ratio.

1. Calculate the new book value per share.

2. Calculate the new total earnings.

3. Calculate the new EPS. (Answer to 4 decimals)

4. Calculate the new stock price.

5. Calculate the new market-to-book ratio. (Answer to 4 decimals)

6. What would the new net income for the company have to be for the stock price to remain unchanged? (Answer in $)