After-tax income increase to prevent dilution of EPS

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Reference no: EM13941498

Newdex has net income of $4,000,000 and 1,000,000 shares outstanding. It needs to raise $6,000,000 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?

Reference no: EM13941498

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After-tax income increase to prevent dilution of EPS : Newdex has net income of $4,000,000 and 1,000,000 shares outstanding. It needs to raise $6,000,000 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 Newde..

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