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Stencil, Inc., wishes to expand Its facilltles. The company currently has 10 million shares outstanding and no debt. The stock sells for $30 per share,

image text in transcribed Stencil, Inc., wishes to expand Its facilltles. The company currently has 10 million shares outstanding and no debt. The stock sells for $30 per share, but the book value per share Is $20. Net Income is currently $3.8 million. The new facility will cost $55 million, and It will Increase net income by $620,000. Assume a constant price-earnings ratio. a.1. Calculate the new book value per share. (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) a-2. Calculate the new total earnings. (Do not round Intermedlate calculations.) a.3. Calculate the new EPS. (Do not round Intermedlate calculations and round your answer to 4 decimal places, e.g., 32.1616.) Calculate the new stock price. (Do not round Intermedlate calculatlons and round a.4. your answer to 2 decimal places, e.g., 32.16.) a.5. Calculate the new market-to-book ratio. (Do not round Intermedlate 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 b. remain unchanged? (Do not round Intermedlate calculations and enter your answer In dollars, not millions, rounded to the nearest whole number, e.g., 1,234,567

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