The hamilton corporation currently has 2 million shares of


The Hamilton Corporation currently has 2 million shares of stock outstanding and will report earnings of $6,700,000 in the current year. The company is considering the issuance of 1 million additional shares that will net $37 per share to the corporation.

What is the immediate dilution effect for this new stock issue?

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Finance Basics: The hamilton corporation currently has 2 million shares of
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