Question 24:

24. The Anton Corporation, a manufacturer of radar control equipment, is planninesa to sell its shares to the general public for the first time. The firm's investment dealeri working with the Anton Corporation in determining a number of items.I on the Anton Corporation follows: ANTON CORPORATION Income Statement For the year ending Dec. 31, 2014 $22,428,000 16,228,000 6,200,000 2,659.400 3,540,600 Sales (all on credit) Cost of goods sold Selling and administrative expenses... Operating profit. Interest expense 3,170,000 Taxes Net Income. $ 1,728,000 Balance Sheet As of December 31, 2014 Assets Cash Marketable securities Accounts recelvable Inventory $ 150,000 100,000 2,000,000 6,050,000 Total current assets Net plant and equipment Total assets Liabilities and Shareholders' Equity Accounts payable Notes payable 6,750000 $12.800,000 $ 1,000,000 1.200,000 2.200,000 2,380,000 4,580,000 Total current liablilities Long-term liabilities Total liabilities Shareholders' equity Common stock (1,200,000 shares) Retalned earnings 4,000,000 4,220,000 8,220,000 Total shareholders' equity Total liablities and shareholders' equity a. Assume that 500,000 new corporate shares will be issued to the general P $12,800,000 the initial What will EPS immediately after public offering be? (Round to two places to right of the decimal point.) Based on the P/E ratio of 10, what will the price of the stock be? Use EPS after the distribution in the calculation. b. Assuming an underwriting spread of 7 percent and out-of-pocket co costs of $150,000, what will be the net proceeds to the corporation