Fifo Inc. raises $4 million dollars by issuing shares of common stock. The market rate of interest is 10% at the time of issue. Assuming a corporate income tax rate of 30%, 100,000 common shares issued, and an increase in net income of $1,000,000 due to the additional resources, what is the effect on earnings per share? a. $40 increase  b. $28 increase  c. $4.20 increase  d. $7 increase

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A: Formula: EPS = ( Net income - Preferred dividends ) / Total weighted average outstanding shares

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A: V(3) = 33.3(10%-5%)         =666

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Q: company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which…

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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

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A: Since, there are more than three parts in one question, the answer for first four parts is provided…