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Calculate earnings per share for american health systems

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Reference no: EM132812397

American Health Systems has 7,000,000 shares of stock outstanding and will report earnings of $14 million in the current year. The company is considering the issuance of 1,600,000 additional shares, which can only be issued at $20 per share.

Problem a. Assume that American Health Systems can earn 5 percent on the proceeds. Calculate earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM132812397

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