Question
Spring Fording Corp. (SFC) has 1,700,000 shares outstanding. Its most recent reported earnings were $8,500,000. SFC is considering issuing an additional 800,000 shares. The proceeds
Spring Fording Corp. (SFC) has 1,700,000 shares outstanding. Its most recent reported earnings were $8,500,000. SFC is considering issuing an additional 800,000 shares. The proceeds of the issue will be invested in a new plant which is expected to add an additional $1,000,000 in earnings. 1. SFC's most recent reported EPS is?
2. What SFC's EPS would be without the addition of expected $1,000,000 in new earnings?
3. What SFC's EPS following the issue would be (in long term)?
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
