Suppose that Goldac decides to expand its business in the U.S. market. To finance the investments, Goldac plans to issue 400,000 new ordinary shares (common stocks). The nominal value of these ordinary shares (common stocks) will be 10 dollars. Currently, the share capital (common stock) of Goldac is 6 million dollars, i.e. there are, in total 600,000 ordinary shares (common stocks) issued, each with a nominal value of 10 dollars.

Suppose that the new ordinary shares will be offered to investors at a price 24 dollars per share. Explain briefly and justify by calculations, whether this issue price could be attractive for investors whose annual required rate of return on investments of equivalent risk, is 10%, provided that according to consensus forecasts Goldac’s net profit will not decrease in the future compared to the level of the net profit of 2019 (which is estimated to be 3.081 million dollars), but would rather increase.