Multiple Choice
Penrod Autoservice Ltd. has 200,000 common shares at a market value of $10 per share, and a net income after tax of $90,000. The company would like to issue 30,000 more shares at $10 per share. How much income after tax will the company have to earn to maintain current shareholders' wealth?
A) $22,500
B) $103,500
C) $112,500
D) $120,000
E) $199,500
Correct Answer:
Verified
Correct Answer:
Verified
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