Question
Harpers Dog Pens, Inc., with the help of its investment bank, recently issued $191.7 million of new debt. The offer price on the debt was
Harpers Dog Pens, Inc., with the help of its investment bank, recently issued $191.7 million of new debt. The offer price on the debt was $1,000 per bond and the underwriters spread was 6 percent of the gross proceeds.
Calculate the amount of capital funding Harpers Dog Pens raised through this bond issue. (Enter your answer in dollars not in millions.)
When answering this question, I came up with the following answer:
191,700,000 x .06 = 11,502,000
191,700,000 - 11,502,000 = 180,198,000
Now I know, that the answer that I have now is in millions. So I thought my final answer (in dollars) would be 108,198. However, the program that I'm using for my homework is marking my answer wrong. So I would like to know if I did the wrong calculations or if my ''rounding'' is wrong. Thanks So Much!
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