Power Temporaries Inc. has earnings of $5,000,000 with 2,200,000 shares outstanding before a public distribution. Ten hundred thousand shares will be included in the sale, of which 600,000 are new corporate shares and 400,000 are shares currently owned by Julie Lipner, the founder and CEO. The 400,000 shares that Julie is selling are referred to as a secondary offering and all proceeds will go to her. (Round the final answers to 2 decimal places.) a. What were the corporation's earnings per share before the offering? Earnings per share $ 2.27 b. What are the corporation's earnings per share expected to be after the offering? Earnings per share $ LA
Power Temporaries Inc. has earnings of $5,000,000 with 2,200,000 shares outstanding before a public distribution. Ten hundred thousand shares will be included in the sale, of which 600,000 are new corporate shares and 400,000 are shares currently owned by Julie Lipner, the founder and CEO. The 400,000 shares that Julie is selling are referred to as a secondary offering and all proceeds will go to her. (Round the final answers to 2 decimal places.) a. What were the corporation's earnings per share before the offering? Earnings per share $ 2.27 b. What are the corporation's earnings per share expected to be after the offering? Earnings per share $ LA
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Power Temporaries Inc. has earnings of $5,000,000 with 2,200,000 shares outstanding before a public distribution. Ten hundred
thousand shares will be included in the sale, of which 600,000 are new corporate shares and 400,000 are shares currently owned by
Julie Lipner, the founder and CEO. The 400,000 shares that Julie is selling are referred to as a secondary offering and all proceeds will
go to her. (Round the final answers to 2 decimal places.)
a. What were the corporation's earnings per share before the offering?
Earnings per share
$
b. What are the corporation's earnings per share expected to be after the offering?
Earnings per share
$
2.27
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