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Uptown Inc. pays Income tax at the rate of 30%. The president is considering an investment in new factory equipment of $500,000. He expects the
Uptown Inc. pays Income tax at the rate of 30%. The president is considering an investment in new factory equipment of $500,000. He expects the income before and from the investment to be $55,000 way Ore option is one the money by issuing bonds that have a stated interest rate of 7%. Allemeively, Uptown Inc. can raise the $500.000 byling 100,000 common shares Currently there we 200.000 common hors outstanding. The arealet income interest and income tax), before considering the investment, la 5730,000 per year. What is the earnings per common share if bonds are issued? O A $3.72 OB $3.70 OG $3.65 OD. $3.93
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