Eaton, Inc., wishes to expand its facilities. The company currently has 6 million shares outstanding and no debt. The stock sells for $32 per share, but the book value per share is $10. Net income is currently $3 million. The new facility will cost $48 million, and it will increase net income by $840,000. Assume a constant price-earnings ratio. What would the new net income for the company have to be for the stock price to remain unchanged?
