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Please help with A & E The Presley Corporation is about to go public. It currently has aftertax earnings of $7,900,000, and 2,800,000 shares are

Please help with A & E

image text in transcribed The Presley Corporation is about to go public. It currently has aftertax earnings of $7,900,000, and 2,800,000 shares are owned by the present stockholders (the Presley family). The new public Issue will represent 600,000 new shares. The new shares will be priced to the public at $20 per share, with a 4 percent spread on the offering price. There will also be $210,000 In out-of-pocket costs to the corporation. a. Compute the net proceeds to the Presley Corporation. Note: Do not round intermedlate calculations and round your answer to the nearest whole dollar. b. Compute the earnings per share Immedlately before the stock Issue. Note: Do not round intermedlate calculations and round your answer to 2 decimal places. c. Compute the earnings per share immedlately after the stock issue. Note: Do not round intermedlate calculations and round your answer to 2 decimal places. d. Determine what rate of return must be earned on the net proceeds to the corporation so there will not be a dilution In earnings per share during the year of going public. Note: Do not round intermedlate calculations. Enter your answer as a percent rounded to 2 declmal places. e. Determine what rate of return must be earned on the proceeds to the corporation so there will be a 5 percent increase In earnings per share during the year of going public. Note: Do not round Intermedlate calculations. Enter your answer as a percent rounded to 2 declmal places

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