Only for Siddharth

1.  Newdex has net income of $2,500,000 and 1,000,000 shares outstanding. It needs to raise $3,610,000 in funds for a new asset. Its investment banker plans to sell an issue of common stock to the public for $40 per share, less a spread of 5%. How much must Newdex's after-tax income increase to prevent dilution of EPS?
Question 11 options:
   
A)     $40,000
   
B)     $237,500
   
C)     $250,000
   
D)     none of these