Question: R Company needs $ 2 , 0 0 0 , 0 0 0 to finance an expansion of plant facilities. The compans expects to earn
R Company needs $ to finance an expansion of plant facilities. The compans expects to earn a return of on this investment before considering the cost of capit or income taxes. The average income tax rate for the R Company is If the company raises the funds by issuing bonds at face value, the earnings available to common stockholders after the new plant facilities are in operation may be expected to increase by
A $
B $
C $
D $
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