Problem 15-18 Features associated with a stock distribution [L015-3] land Corporation has a net ncome of $18 milion and 6 milion haros outstandr its common stock s currenty se for S44 per share Midland plans to sol common stock to so up a major no production tac ity with yeer, and then it is expected to earn a 14 pencent return on the investment Stanley Morgan and Co., an investment banking firm, plans to sell the issue to the pubic for $34 per share with a spread of 6 percent. production facility will not nat cost o S20,774 000. T o production tac y wl produce proft or ono a. How many shares of stock must be sold to net $20,774,000? (Note: No out-af-pockot costs must bo considered in this problam.) (Do not round intermediate caleulations and round your answer to the nearest whole number.) issue (based on a b. what are the earnin places.) per share P and te p ce earnings atio bet e ngs ratio betore the stock price of S44)? what ill be te price per share immediate y ter the sale of stock the PE stays constant? Do not ound inte mediate calculations an nd round your answers to 2 decimal EPS atter Price e Compute te EPS and the nce r te PE stays consta a ter the new production tacity begins to produce a prot(Do not round intermediate calculations and round your answers to 2 decimal places. EPS after d-1. Are the shareholders better off because of the sale of stock and the resutant investment? Yes No d-2. What other financing strategy could the oompany have tried to increase earnings per share? (You may select more than one answer. Single click the box with the question mark to produce a cheak mark for a correat answer and double click the box with the question mark to empty the box for a wrong answer) Combination of debt and stock a issued fresh stock Debt tnanong Stock split