Tyson Iron Works is about to go public. It currently has aftertax earnings of $4,500,000, and 3,400,000 shares are owned by the present stockholders. The new public issue will represent 400,000 new shares. The new shares will be priced to the public at $10 per share with a 3 percent spread on the offering price. There will also be $180,000 in out-of-pocket costs to the corporation.

D) Determine what rate of return must be earned on the net proceeds to the corporation so there will not be any dilution in earnings per share during thr year of going public

E) Determine what rate of return must be earned on the proceeds to the corporation so there will be 10 percent increase in earnings per share during the year going public

a. Compute the net proceeds to Tyson Iron Works. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds 3,700,000 b. Compute the eanings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) 1,320 Eamings per share c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) 1.184 Eanings per share S d. Determine what rate of return must be eamed on the net proceeds to the corporation so there will not be a dilution in earnings per share during the year of going public intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of retum e. Determine what rate of return must be earned on the proceeds to the corporation so there will be a 10 percent increase in eamings per share during the year of going pub intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) % Rate of return