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Teardrop, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and no debt. The stock sells for $43 per share,

Teardrop, 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 $10. Net income is currently $5.0 million. The new facility will cost $60 million, and it will increase net income by $560,000. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. a-2. Calculate the new total earnings. a-3. Calculate the new EPS. a-4. Calculate the new stock price. a-5 Calculate the new market-to-book ratio. b. What would the new net income for the company have to be for the stock price to remain unchanged? PLEASE DO NOT COPY FROM CHEGG OR I HAVE TO REPORT. ONLY ATTEMPT IF YOU CAN ANSWER ALL THE PARTS.

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