The Hamilton Company currently has $3$ million shares of stock outstanding and will report earnings of $$6\mathrm{.}88$ million in the current year. The company is considering the issuance of $3$ million additional shares of stock that will net $$33$ per share to the corporation. $($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 $

per share

b$-1.$ Assume the Hamilton Company can earn $13\mathrm{.}60$ percent on the proceeds of the share issue in time to include it in the current year$$s results. Calculate earnings per share.

Earnings per share $

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

multiple choice

Yes

No