Newdex has net income of 3400000 and 1000000 shares


Question: Newdex has net income of $3,400,000 and 1,000,000 shares outstanding. It needs to raise $5,400,000 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 to prevent dilution of EPS? (Round "EPS" to 1 decimal place, intermediate and final answers to the nearest whole dollar amount.)

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Newdex has net income of 3400000 and 1000000 shares
Reference No:- TGS02812263

Expected delivery within 24 Hours