You are advising a company that is working to raise $100,000,000. You believe that it is best for the company to issue stocks and bonds to raise these funds. The key market conditions during the planning period are as follows: the required interest rates on bonds with a AAA rating is 3.35%; the company's stock is currently priced to deliver an 11% return.

If you still plan to raise 40% of the funds from selling bonds and 60% of the funds from selling stock, how many bonds and how many shares of stock do you have to sell to raise the funds using the new prices on the day the market closes? 1 question