The Carma S$.$ Diego Travellers Corp. has $10$ million shares of stock outstanding at a current market price of $$10.$ It is considering a new share offering that will net it $$9$ a share on $1$ million shares. Earnings this year are expected to be $$19$ million. $($Do not round intermediate calculations. Round the final answers to $2$ decimal places.$)$

a$.$ What is the immediate dilution potential for this new share issue?

Dilution

$

pershare

b$-1.$ Assume Carma S$.$ Diego Travellers Corp. can earn $11$ percent on the proceeds of the share issue and these can be realized with this year's results. Calculate earnings per share.

Earnings per share

b$-2.$ Should the new issue be undertaken based on earnings per share?

Yes

No

c$-1.$ If the $1$ million additional shares can be issued to net $$20$ per share and the company can earn $11$ percent on the proceeds, calculate earnings per share.

Earnings per share

c$-2.$ Should the new issue be undertaken based on earnings per share?

Yes

No $x$