Jupiter Insurance Inc. currently has net income of $8 million and 2 million common shares outstanding which sell for $25/share. Jupiter has decided to issue new stock to raise $6,000,000 to expand its operations. Jupiter's investment dealer will sell the stock for $22 with a spread of 8%. There will be a $100,000 registration cost.

A) Calculate current EPS and PE ratio.

B) How many shares will have to be sold to net $6 million?

C) Calculate new EPS and stock price immediately after the sale if the PE ratio remains constant.

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