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Vandenbosch Insurance Inc

question 40

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Vandenbosch Insurance Inc.currently has net income of $8 million and 2 million common shares outstanding which sell for $25/share.Vandenbosch has decided to issue new stock to raise $6,000,000 to expand its operations.Vandenbosch's investment dealer will sell the stock for $22 with a spread of 8%.There will be a $100,000 registration cost.
A)Calculate current EPS and PE ratio.
B)How many shares will have to be sold to net $6 million?
C)Calculate new EPS and stock price immediately after the sale if the PE ratio remains constant.


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American Products

Goods produced within the United States, often highlighted for their quality, innovation, or cultural significance.

Ideology

A system of ideas, beliefs, and values that shapes the way individuals or groups understand the world and interact within it.

Jose Marti

A Cuban national hero and an important figure in Latin American literature who was a poet, essayist, and journalist, playing a key role in the fight for Cuban independence from Spain.

Revolution

A fundamental and often sudden change in political power or organizational structures that occurs when the population revolts against current authorities.

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