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Determine rate of return that must be earned on net proceeds so as not to dilute earnings in inital year. Original 2,500,000 shares with after tax earnings of $7,500,000. New issue is 600,000 sh at 20.00 with 5% spread, and $200,000 out of pocket cost.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M957267

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