The appropriate action would be: C. <span>Thank the taxpayer, and explain that you cannot accept any payment for your services.
Government workers couldn't receive cash payment in any kind unless there is a necessary administrative purpose.
They could on the other hand, receives Gifts that held the value less than $ 20</span>
Answer:
a) Immediate dilution based on the new corporate shares that are being offered:
The prompt dilution of the EPS dependent on the issue of new offers would be the EPS registered after the issue. The post issue EPS or dilution EPS will be figured by isolating the income profit with the quantity of offers remarkable on the remainder of day of the budgetary year.
Compute the EPS and diluted EPS as below:
EPS = Earning + Number of shares outstanding
EPS = $26 million + 11 million shares
EPS = $2.36
Diluted EPS = Earnings + Number of shares outstanding
Diluted EPS = $26 million- (11 million + 3 million)
Diluted EPS = $1.86
b) Compute the stock price:
The stock cost of a Share will be figured by duplicating the EPS with the PE multiple. In the given information, the PE multiple is 30 and the new EPS is $1.86. Subsequently, the stock cost would be:
Stock price = EPS x PE
Stock price =$1.86 x 30
Stock price = $55.80
(c) The establishing investors will likely not be satisfied on the grounds that they get a cost of $50 and estimation of stock following contribution is $55.80. They wish that offering value at first would be more.
