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Jordan Broadcasting Company: EPS Before and after Stock Issue

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Jordan Broadcasting Company Solution:
Shares Outstanding 8,000,000

a) Earnings per share before stock issue =
Earnings $24,000,000
New Stock Issue 3,000,000 Earnings per share after stock issue =
Price of new shares $40
P/E 23

b) Earnings per Share =
P/E =
Stock Price =

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Solution Summary

The solution determines the stock price, earning per share and P/E.

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