Question
Power Temporaries Inc. has earnings of $6,000,000 with 2,000,000 shares outstanding before a public distribution. Eight hundred thousand shares will be included in the sale,
Power Temporaries Inc. has earnings of $6,000,000 with 2,000,000 shares outstanding before a public distribution. Eight hundred thousand shares will be included in the sale, of which 500,000 are new corporate shares and 300,000 are shares currently owned by Julie Lipner, the founder and CEO. The 300,000 shares that Julie is selling are referred to as a secondary offering and all proceeds will go to her. (Round the final answers to 2 decimal places.)
a. What were the corporations earnings per share before the offering?
Earnings per share $
b. What are the corporations earnings per share expected to be after the offering?
Earnings per share $
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
