Newdex Has Net Income of $3,000,000 (INCLUDING the Effect of Expected

question 41

Multiple Choice

Newdex has net income of $3,000,000 (INCLUDING the effect of expected underwriting costs) and 1,000,000 shares outstanding. It needs to raise $5,000,000 in funds for a new asset. Its investment banker plans to sell an issue of common stock to the public for $40, less a spread of 10%. How much must Newdex's after-tax income be to prevent dilution of earnings per share?

• A) $3,040,000
• B) $3,416,667
• C) $3,350,000
• D) $3,375,000

---

Definitions:

Turnout

The percentage of eligible voters who cast a ballot in an election, often used as a measure of political engagement or apathy.

New Working Class

A term referring to the shift in the working class towards more service-oriented and tech-based jobs in the late 20th and early 21st centuries.

Political Participation

Activities that citizens engage in with the intention of influencing the selection of political leaders and/or the policies they enact, including voting, campaigning, and protest activities.

Turnout Rates

The proportion of qualified voters who participate by voting in an election.