Goldman Sachs Group Inc.'s fiscal first-quarter net income rose 20% as the banking giant recovered from its first quarterly loss since going public a decade ago in the prior quarter.

But the firm said it would sell $5 billion of common shares to raise money to repay government capital, in a move that will boost shares outstanding by about 8%. It also prorated its quarterly dividend to 35 cents a share. Goldman received $10 billion in October from the Treasury Department's Troubled Asset Relief Program, and its executives have suggested in recent weeks they would prefer to repay that money as soon as possible.

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