Tyson Iron Works is about to go public. It currently has aftertax earnings of $4,200,000, and 4,100,000 shares are owned by the present stockholders. The new public issue will represent 200,000 new shares. The new shares will be priced to the public at $25 per share with a 4 percent spread on the offering price. There will also be $220,000 in out-of-pocket costs to the corporation.

Determine what rate of return must be earned on the net proceeds to the corporation so there will not be a dilution in earnings per share during the year of going public. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Determine what rate of return must be earned on the proceeds to the corporation so there will be a 10 percent increase in earnings per share during the year of going public. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)