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Newdex has net income of $3,100,000 (INCLUDING the effect of expected out-of-pocket costs) and 1,000,000 shares outstanding. It needs to raise $5,100,000 in funds for
Newdex has net income of $3,100,000 (INCLUDING the effect of expected out-of-pocket costs) and 1,000,000 shares outstanding. It needs to raise $5,100,000 in funds for a new asset. Its investment banker plans to sell an issue of common stock to the public for $50, less a spread of 10%. How much must Newdex's after-tax income increase by to prevent dilution of earnings per share?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
