How much must newdex after-tax income increase

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Reference no: EM132017799

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.)

Reference no: EM132017799

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