Task: Transnational Corporation Balance Sheet
Current Liabilities $10,000,000
Long-Term Debt $18,000,000
Common stock (5,000,000 shares @ $1 par value) $5,000,000
Additional paid in capital $25,000,000
Retained earnings $42,000,000
Total Liabilities and equity $100,000,000
Transnational is considering selling an additional 1 million shares, and it is the investment bankers estimate the selling price to be $40/share. Calculate how much this will change the company's book value and produce a new pro-forma balance sheet.