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Dilution decision. Omega Inc. currently has 4,600,000 shares of stock outstanding and will report earnings of $3,500,000 in the current year. The company is considering

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Dilution decision. Omega Inc. currently has 4,600,000 shares of stock outstanding and will report earnings of $3,500,000 in the current year. The company is considering the issuance of 1,300,000 additional shares that will net $24 per share to the corporation. Assume the Omega can earn 11.0% on the proceeds of the stock Issue in time to include it in the current year's results. a. What is the immediate dilution potential for this new stock issue? 3 Round yout answer to sthe nearest cent. b. Should the new Issue be undertaken based on earnings per share? No, because the final EPS =$1.67 is smailer than the beginning EPS $3.41 Yes, because the final EPS =$3.74 is smaller than the beginand EPS =$4.78 Yes, because the final EPS =$1.17 is farger than the begining EPS = SD 76 No, because the final EPS =$130 is smaller than the begining EPS =$336

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