Butterfield's Is an All-Equity Firm with 132,000 Shares of Stock

Butterfield's is an all-equity firm with 132,000 shares of stock outstanding.The book value per share is $14,and the market value per share is $31.The current net income is $301,000.The firm is considering a new project that will cost $1.4 million and increase net income by $87,000.The current earnings per share is ________ and it will be ________ if the project is accepted.

A) $2.24;$2.12
B) $2.24;$2.08
C) $2.24;$2.21
D) $2.28;$2.19
E) $2.28;$2.11

Correct Answer:

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