American Health Systems currently has 5,700,000 shares of stock outstanding and will report earnings of $15 million in the current year. The company is considering the issuance of 1,900,000 additional shares that will net $40 per share to the corporation. Required:
a. What is the immediate dilution potential for this new stock issue?
b. Assume that American Health Systems can earn 6 percent on the proceeds of the stock issue in time to include them in the current year’s results. Calculate earnings per share.
c. Should the new issue be undertaken based on earnings per share?

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible policy response? cut taxes to encourage consumer spending invest in infrastructure increase government spending to stimulate the economy cut spending equal to the reduction in tax revenue what is a likely consequence of this policy? unemployment falls due to the economic stimulus. the negative consequences of the recession are magnified. consumer spending increases due to their ability to keep more of their after-tax income. there is hyperinflation due to an increase in aggregate demand.

Taking commercial paper means the holder acts honestly

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?