The KN Corporation, a medical and equipment manufacturer, plans to issue an initial public offering. The firm's investment banker, Charles Schwab, is working with the corporation to determine a number of items. Below are their inquiries. A. B. C. D. Assume that 1,800,000 new corporate shares will be issued through the IPO. What will earnings per share be immediately after the public offering? Schwab determines that the appropriate price-earnings ratio for KN is 14. What is the initial stock price for the Corporation? Assuming an underwriting spread of 6 percent and out-of-pocket costs of $450,000, what will be the net proceeds to the corporation? What return must the corporation earn on the net proceeds to equal the earnings per share before the offering? How does this compare with the current return on the balance sheet's total equity? Since Schwab and KN are still moving pieces around, assume that 30% of the initial share distribution belongs to current stockholders and 70% are new shares. How might this ch