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Renees Boutique, Inc., needs to raise $58.17 million to finance firm expansion. In discussions with its investment bank, Renees learns that the bankers recommend a

Renees Boutique, Inc., needs to raise $58.17 million to finance firm expansion. In discussions with its investment bank, Renees learns that the bankers recommend a debt issue with an offer price of $1,000 per bond and they will charge an underwriters spread of 8.5 percent of the gross price.

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