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Business, 28.05.2021 20:10 efloyd04

Wayne, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and no debt. The stock sells for $32 per share, but the book value per share is $10. Net income is currently $3 million. The new facility will cost $48 million, and it will increase net income by $840,000. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share.
a-2. Calculate the new EPS.
a-3. Calculate the new stock price.
a-4. Calculate the new market-to-book ratio.
b. What would the new net income for the company have to be for the stock price to remain unchanged?

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