Business, 12.12.2019 06:31 zazy15

You need to choose between making a public offering and arranging a private placement. in each case the issue involves $9.5 million face value of 10-year debt. you have the following data for each: a public issue: the interest rate on the debt would be 8.25%, and the debt would be issued at face value. the underwriting spread would be 1.15%, and other expenses would be $75,000.a private placement: the interest rate on the private placement would be 8.6%, but the total issuing expenses would be only $25,000.a. calculate the net proceeds from public issue. (enter your answer in dollars not millions of dollars.)b. calculate the net proceeds from private placement. (enter your answer in dollars not millions of dollars.)c. calculate the pv of the extra interest on the private placement. (do not round intermediate calculations. enter your answer in dollars not millions of dollars. round your answer to the nearest whole dollar amount.)

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:30

Following is stanley black & decker’s income statement for 2016 (in millions): stanley black & decker, inc. income statement for the year ended december 31, 2016 ($ millions) sales $11,406.9 cost of goods sold 7,139.7 gross profit $ 4,267.2 selling, general and administrative expenses 2,602.0 other operating expenses 268.2 operating income 1,397.0 interest and other nonoperating expenses 171.3 income before income tax 1,225.7 income tax expense 261.2 net income $ 964.5 compute stanley black & decker’s gross profit margin.

Answers: 1

Answer

Business, 22.06.2019 03:20

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.

Answers: 3

Answer

Business, 22.06.2019 07:20

Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.

Answers: 1

Answer

Business, 22.06.2019 11:00

Zoe would like to be able to save for night courses at the local college. which of these would be a good way for zoe to make more money available for savings without dramatically changing her budget? economía

Answers: 2

Answer

You know the right answer?

You need to choose between making a public offering and arranging a private placement. in each case...

Questions