Leans away from the selection of debt for financing

Reference no: EM131947151

1. Dusty Company is planning an equity issue to finance a new project. Dusty plans to issue 100,000 shares of stock. Projected EPS after completion of the project is $10 and total shares outstanding will be 200,000. What are the projected after-tax earnings after completion of the project?

a. $1 million

b. $2 million

c. $3 million

2. Which of the following leans away from the selection of debt for financing?

a. control

b. income

c. flexibility

d. none of the above

Reference no: EM131947151

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