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The current net income of Thompson Company is $290,000, and 10,000 shares of common stock have been issued. The company is considering a project that
The current net income of Thompson Company is $290,000, and 10,000 shares of common stock have been issued. The company is considering a project that requires $350,000 and would issue bonds payable at 6%. Management believes that the funds raised can be used to increase income before interest and taxes by $350,000 per year. The current tax rate is 40%. What would be the amount of total projected net income if the new project is added to the current projects?
A. $500,000
B. $487,400
C. $479,000
D. $619,000
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