The Hamilton Corporation has 3 million shares of stockoutstanding and will report earnings of $6,880,000 in the currentyear. The company is considering the issuance of 3 millionadditional shares that can only be issued at $33 per share.
a. Assume the Hamilton Corporation can earn 6.00percent on the proceeds. Calculate the earnings per share.(Do not round intermediate calculations and round youranswer to 2 decimal places.)
b. Should the new issue be undertaken based onearnings per share?
