Louisiana Timber Company currently has 2 million shares of stock outstanding and will report earnings of $6.16 million in the current year. The company is considering the issuance of 2 million additional shares that will net $30 per share to the corporation.

a. What is the immediate dilution potential for this new stock issue? I checked my work for part a. and it was correct. I got 1.54 per share

b. Assume the Louisiana Timber Company can earn 13.90 percent on the proceeds of the stock issue in time to include it in the current years results. Calculate earnings per share.

**Part b is where I am struggling and I have continuously come up with 2.58 but that is apparently not correct when I input it into my hw. Many thanks for the help!!