Question
Boulder has net income of P2,500,000 and 1,000,000 shares outstanding. Its ordinary share is currently selling for P40 per share. It needs to raise P3,610,000
Boulder has net income of P2,500,000 and 1,000,000 shares outstanding. Its ordinary
share is currently selling for P40 per share. It needs to raise P3,610,000 in funds for a
new asset. Its investment banker plans to sell an issue of ordinary shares to the public
for P38 for a spread of 5%. How much must Boulder's after-tax income increase to
prevent dilution of EPS?
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Managerial Accounting An Integrative Approach
Authors: C J Mcnair Connoly, Kenneth Merchant
2nd Edition
099950049X, 978-0999500491
