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Walker Machine Tools has 5.4 million shares of common stock outstanding. The current market price...

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Accounting

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Walker Machine Tools has 5.4 million shares of common stock outstanding. The current market price o com $50 per share nights-on. The company's net income this year is 51700 milion. A rights offering has beenoncen 540,000 new shares will be sold at $44.50 per share. The subscription price plus six rights is needed to buy one of the 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.) Earnings por share Price-earnings ratio b. What would the earnings per share be immediately after the rights offering? What would the price earnings to 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) Earnings per share Price-earnings ratio A

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