Tyson Iron Works is about to go public. It currently has aftertax earnings of $$4,000,000,$ and $4,000,000$ shares are owned by the c$.$ Compute the earnings per share immediately after the stock issue. $($Do not round intermediate calculations and round your

answer to $2$ decimal places.$)$

Earnings per share

d$.$ 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.$)$

Rate of return

e$.$ Determine what rate of return must be earned on the proceeds to the corporation so there will be a $5$ 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.$)$

present stockholders. The new public issue will represent $500,000$ new shares. The new shares will be priced to the public at $$20$ per

share with a $5$ percent spread on the offering price. There will also be $$260,000$ in out$-$of$-$pocket costs to the corporation.

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

b$.$ Compute the earnings per share immediately before the stock issue. $($Do not round intermediate calculations and round your

answer to $2$ decimal places.$)$

Earnings per share