Question
WonderWorld Widgets (WWW) needs to raise $75 million in debt. To issue the debt, WWW must pay its underwriter a fee equal to 3 percent
WonderWorld Widgets (WWW) needs to raise $75 million in debt. To issue the debt, WWW must pay its underwriter a fee equal to 3 percent of the issue. The company estimates that other expenses associated with the issue will total $450,000. If the face value of each bond is $1,000, how many bonds must be issued to net the neede $75 millions? Assume that the firm cannot issue a fraction of a bond.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
