Dammer Corporation needs to raise $2,200,000. The corporation plans to sell 5%,10-year bonds at the...
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Dammer Corporation needs to raise $2,200,000. The corporation plans to sell 5%,10-year bonds at the face value of $2,200,000 on January 1 of the current year. Dammer Corporation currently has 120,000 shares of stock outstanding and will generate net income of $1,200,000 in the current year. The $2,200,000 from the bond sale is expected to generate additional income of $1,000,000 before interest and taxes for the current year. The income tax rate is 20%. What are the earnings per share for the current year after consideration of the sale of the bonds? (Round your final answer to the nearest cent.) $17.42$18.90$10$15.93 None of the above
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