You need to choose between making a public offering and arranging a private placement. In each case the issue involves $10 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 8.5%, and the debt would be issued at face value. The underwriting spread would be 1.5%, and other expenses would be $80,000.

A private placement: The interest rate on the private placement would be 9%, but the total issuing expenses would be only $30,000.

a-1.Calculate the net proceeds from public issue.(Enter your answer in nearest dollars not in millions.)

Net proceed$9,770

a-2.Calculate the net proceeds from private placement.(Enter your answer in nearest dollars not in millions.)

Net proceed$9,970

I calculated 9770 and 9970 but the computer quiz told me those answers were incorrect.

6) In 2010 the Pandora Box Company made a rights issue at 5 a share of one new share for every four shares held. Before the issue there were 10 million shares outstanding and the share price was 6. Suppose that the company had decided to issue new stock at 4 rather than 5.

a.How many new shares would it have needed to sell to raise the same sum of money?(Enter your answer in whole numbers not in millions.)

Number of shares3,125

b.The rights issue gives the shareholder the opportunity to buy one new share for less than the market price.What was the value of this opportunity?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Value of the right0.20

c.What was the prospective stock price after the issue?(Round your answer to 2 decimal places.)

Prospective stock price5.80

d.How far could the total value of the company fall before shareholders would be unwilling to take up their rights?(Enter your answer in millions.)

Total value of the company60million

Again I calculated the number an came up with 3,125, .20, 5.80 and 60 million. ALL of my answers were incorrect. Please help.