Cheer, Inc., wishes to expand Its facilitles. The company currently has $8$ million shares

outstanding and no debt. The stock sells for $$43$ per share, but the book value per share

Is $$51.$ Net Income for Teardrop is currently $$4\mathrm{.}6$ million. The new facility will cost $$60$

million and will Increase net Income by $$780,000.$ The par value of the stock is $$1$ per

share. Assume a constant price$-$earnings ratio.

a$-1.$Calculate the new book value per share. Assume the stock price is constant. $($Do not

round Intermedlate calculations and round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

a$.$ Calculate the new total earnings. $($Do not round Intermedlate calculatlons and enter

your answer In dollars, not millions of dollars, rounded to the nearest whole

number, e$.$g$.,1,234,567.)$

a$.$ Calculate the new EPS. Include the Incremental net Income In your calculations. $($Do

not round Intermedlate calculations and round your answer to $4$ declmal places,

e$.$g$.,32\mathrm{.}1616.)$

a$.$ Calculate the new stock price. Include the Incremental net Income in your

calculations. $($Do not round Intermedlate calculations and round your answer to $2$

declmal places, e$.$g$.,32\mathrm{.}16.)$

a$.$ Calculate the new market$-$to$-$book ratlo. $($Do not round Intermedlate calculations

and round your answer to $3$ declmal places, e$.$g$.,32\mathrm{.}161.)$

b$.$ What would the new net Income for the company have to be for the stock price to

remain unchanged? $($Do not round Intermedlate calculations and enter your

answers In dollars, not millions of dollars, rounded to the nearest whole number,

e$.$g$.,1,234,567.)$