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You need to choose between making a public offering and arranging a private placement In each case, the issue involves $10.4 million face value of

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You need to choose between making a public offering and arranging a private placement In each case, the issue involves $10.4 million face value of 10 -year debt. You have the following data for each: - A public issue. The interest rate on the debt would be 8.7%, and the debt would be issued at face value. The underwriting spread would be 1.54%, and other expenses would be $84.000 - A private placement. The interest rate on the private placement would be 9.4%, but the total issuing expenses would be only $34.000. Required: Q-1. Calculate the net proceeds from public issue. o.2. Calculate the net proceeds from private placement. b-1. Calculate the PV of the extra interest on the private placement. b-2. Other things being equal, which is the better deal? Complete this question by entering your answers in the tabs below. Calculate the net proceeds from public tssue and private placement. (Do not round intermedlate caiculations. Enter your answers in dollars not millions.) You need to choose between making a public offering and arranging a private placement. In each case, the issue involves $10.4 million face value of 10-year debt. You have the following data for each: - A public issue. The interest rate on the debt would be 8.7%, and the debt would be issued at face value. The underwriting spread would be 1.54%, and other expenses would be $84,000. - A private placement. The interest rate on the private placement would be 9.4%, but the total issuing expenses would be only $34,000 Required: a-1. Calculate the net proceeds from public Issue. a-2. Calculate the net proceeds from private placement. b-1. Calculate the PV of the extra interest on the private placement. b-2. Other things being equal, which is the better deal? Complete this question by entering your answers in the tabs below. Calculate the PV of the extra interest on the private placement and other things being equal, which is the better deal? (Do not round intermediate calculations. Enter your answer in dollars not in millions. Round your answer to the nearest whole dolfiar.)

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