Stencil, Inc, wishes to expand its facilities. The company currently has 12 million shares outstanding and no debt. The stock sells for $43 per share, but the book value per share is 510. Net income is currently $5 million. The new facility will cost $60 million, and it will increase net income by $560,000. Assume a constant price-earnings ratio.

Calculate the new book value per share, new total earnings, the new EPS, the new stock price, and the new market-to-book ratio.

Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

What would the new net income for the company have to be for the stock price to remain unchanged?

-1. Book value

a-2. Total earnings

-3. EPS

a 4. Stock price

a-5. Market-to-book ratio

b. Net income