Question
True Value Tools is considering a new, eight-year maturity bond offering. The investment bankers tell them that the issue costs will amount to two percent
True Value Tools is considering a new, eight-year maturity bond offering. The investment bankers tell them that the issue costs will amount to two percent of the sale price of the bond. The firms analysts should recognize that the issue costs will Select one: a. lower the net proceeds per bond sold and lower the cost of debt financing b. raise the net proceeds per bond sold and raise the cost of debt financing c. raise the net proceeds per bond sold and lower the cost of debt financing d. lower the net proceeds per bond sold and raise the cost of debt financing
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