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

question 31

Multiple Choice

Newdex has net income of $3,000,000 (INCLUDING the effect of expected out-of-pocket 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

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Definitions:

Roles

Roles are the behaviors, obligations, and privileges attached to a social position, guiding how individuals are expected to behave in certain contexts.

Statuses

Positions or ranks that individuals hold in social, professional, or other hierarchies, which influence their roles, rights, and responsibilities within a group or society.

Feminist Theory

For the most part, claims that patriarchy is at least as important as class inequality in determining a person’s opportunities in life. It holds that male domination and female subordination are determined not by biological necessity but by structures of power and social convention. It examines the operation of patriarchy in both micro and macro settings. And it contends that existing patterns of gender inequality can and should be changed for the benefit of all members of society.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.