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Fifo Inc. raises $4 million dollars by issuing shares of common stock.The market rate of interest is 10% at the time of issue.Assuming a corporate
Fifo Inc. raises $4 million dollars by issuing shares of common stock.The market rate of interest is 10% at the time of issue.Assuming a corporate income tax rate of 30%, 100,000 common shares issued, and an increase in net income of $1,000,000 due to the additional resources, what is the effect on earnings per share?
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