Louisiana Timber Company currently has $5$ million shares of stock outstanding and will report earnings of $$6\mathrm{.}32$ million in the current year. The company is considering the issuance of $1$ million additional shares that will net $$35$ per share to the corporation.

a$.$ What is the immediate dilution potential for this new stock issue?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Dilution

per share

b$-1.$ Assume the Louisiana Timber Company can earn $14\mathrm{.}20$ percent on the proceeds of the stock issue in time to include it in the current year's results. Calculate earnings per share.

Note: Do not round intermediate calculations and round your answer to $2$ decimal places.

Earnings per share

$b-2.$ Should the new issue be undertaken based on earnings per share?

$$ Yes

$$ No