Question
Ship Shape Marine (SSM) needs $92 million to support future growth. If SSM issues bonds to raise funds, flotation (issuance) costs will be 8 percent.
Ship Shape Marine (SSM) needs $92 million to support future growth. If SSM issues bonds to raise funds, flotation (issuance) costs will be 8 percent. Each bond will be sold for $1,000; fractions of bonds cannot be issued. How many bonds must be issued so that SSM has $92 millionafterflotation costs to use for its planned growth?
- 99,360
- 92,000
- 100,000
- 84,640
- 108,000
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Organizational Behavior
Authors: Andrzej A. Huczynski, David A. Buchanan
8th Edition
978-0273774815
