Business, 19.10.2019 01:30 lilkari5

Walker machine tools has 6.5 million shares of common stock outstanding. the current market price of walker common stock is $72 per share rights-on. the company’s net income this year is $22.50 million. a rights offering has been announced in which 650,000 new shares will be sold at $66.50 per share. the subscription price plus seven rights is needed to buy one of the new shares. a. what are the earnings per share and price-earnings ratio before the new shares are sold via the rights offering? (do not round intermediate calculations and round your answers to 2 decimal places.) b. what would the earnings per share be immediately after the rights offering? what would the price-earnings ratio be immediately after the rights offering? (assume there is no change in the market value of the stock, except for the change when the stock begins trading ex-rights.) (do not round intermediate calculations and round your answers to 2 decimal places.)

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Walker machine tools has 6.5 million shares of common stock outstanding. the current market price of...