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A firm is considering an investment that would cost $12,000,000. The investment is expected to...

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Finance

A firm is considering an investment that would cost $12,000,000. The investment is expected to increase the firm's current net income of $1,500,000 by $900,000 and would be financed with the issue of 800,000 new shares. The firm currently has 4,000,000 shares outstanding with a book value per share of $30. Assume the firm's current PE ratio of 14 would not change if the firm proceeds with the investment. What is expected to be the firm's new EPS if it proceeds with the investment?

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