Louisiana Timber Company currently has 4 million shares of stock outstanding and will report earnings of $6.36 million in the current year. The company is considering the issuance of 2 million additional shares that will net $38 per share to the corporation.

a. What is the immediate dilution potential for this new stock issue? (Do not round intermediate calculations and round your answer to 2 decimal places.) Answer: $0.53 per share (correct)

b-1. Assume the Louisiana Timber Company can earn 9.00 percent on the proceeds of the stock issue in time to include it in the current years results. Calculate earnings per share.

I kept getting the answer 1.63 but it's wrong