Homework week 6 - The sixth weeks homework assignment...

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3 American Health Systems A. What is the immediate dilution potential for this new Current EPS 15 6 $2.5 1.5 mil shares were issued, oustadaning shares =7.5 mil EPS 15 7.5 $2 Dilution $2.5 $2 $0.5 per share Total Proceeds $1,500,000 50 $75,000,000 New Income $75,000,000 12% $9,000,000 Total Income $1,500,000 $9,000,000 $10,500,000.00 The sixth week’s homework assignment involves new issues of common shares, underwriting s and lease obligations. Chapter 15; Page 485, #3, #4. Page 486, #8. Page 489, #19. Chapter 16; Page 518, #4, #7. Page 520, #17. B. Assume that American health systems can earn 12% on the proceeds of the stock the new issue be undertaken based on e
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stock issue? spread, bond yield, zero-coupon bonds, bond analysis issue in time to include them in the current year's result. should earnings per share?
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Page 486, #8. Percentage Net to Underwriting Size of Offer Public Price Corporation Spread a. $1,600,000 $40 $36.70 8.25% b. $6,000,000 $40 $37.28 6.80% c. $25,000,000 $40 $38.12 4.70% Assume Fisher Food Products is thinking about three different size offerings for the issuance o shares.
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