(Answered) Tyco has net income of 25 million and 1 million shares

Finance

Tyco has net income of $2.5 million and 1 million shares outstanding. Its common stock is currently selling for $40 per share. It needs to raise $3.61million in funds for a new asset. Its investment banker plans to sell an issue of common stock to the public for $38 for a spread of 5%. How much must Tyco's after-tax income increase to prevent dilution of EPS?

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