1. Dusty Company is planning an equity issue to finance a new project. Dusty plans to issue 100,000 shares of stock. Projected EPS after completion of the project is $10 and total shares outstanding will be 200,000. What are the projected after-tax earnings after completion of the project?
a. $1 million
b. $2 million
c. $3 million
2. Which of the following leans away from the selection of debt for financing?
a. control
b. income
c. flexibility
d. none of the above