Calculate net proceeds to renees from the sale of debt

Assignment Help Financial Management

Reference no: EM131359509

Renee's Boutique. Inc., needs to raise $58.10 million to finance firm expansion. In discussions with its investment bank. Renee's leams that the bankers recommend a debt issue with an offer price of $1,000 per bond and they will charge an underwriter's spread of 5.0 percent of the gross price.

Calculate the net proceeds to Renee's from the sale of the debt. (Enter your answer in millions of dollars and round to 2 decimal places.)

How many bonds will Renee's Boutique need to sell in order to receive the $58.10 million it needs? (Do not round intermediate calculations and round your final answer to the nearest whole number.)

Reference no: EM131359509

Questions Cloud

What recommendations can you provide moving forward : How does the implementation of or changes to a dividend policy usually affect stock prices? What recommendations can you provide moving forward?

Describe the type of compensation strategy : Select an organization with which you are familiar and describe the type of compensation strategy it uses.

Calculate the gross proceeds per share : Howett Pockett. Inc., plans to issue 11.5 million new shares of its stock. In discussions with its investment bank. Howett Pocket learns that the bankers recommend a net proceed of $36.80 per share and they will charge an underwriter's spread of 8.5 ..

Explanation of two of the four heuristics : Post a brief explanation of two of the four heuristics (representativeness, availability, false consensus effect, and anchoring heuristic). Then describe one example from work, home, or a social setting of when you found heuristic use to be helpfu..

Calculate net proceeds to renees from the sale of debt : Renee's Boutique. Inc., needs to raise $58.10 million to finance firm expansion. In discussions with its investment bank. Renee's leams that the bankers recommend a debt issue with an offer price of $1,000 per bond and they will charge an underwriter..

Write the given short paper assignment : Write the given short paper assignment.- You have two ideas here, and need to pick one at the end of the process. The worksheet is just to help you organize your ideas.

Brief description of the attribution theory : Post a brief description of the attribution theory you selected. Then describe how the theory you selected explains the behavior of the person in the media. Finally, describe one limitation of the theory in explaining the behavior of the person yo..

What is fords weighted average cost of capital : The market value of Fords' equity, preferred stock and debt are $7 billion, $3 billion, and $10 billion, respectively. What is Ford's weighted average cost of capital if its tax rate is 30%?

Calculate the total interest and fees casey one stop : Casey's One Stop has been approved for a $327, 500 loan commitment from its local bank. The bank has offered the following terms: term = one year, up-front fee = 90 basis points, back-end fee = 35 basis points, and rate on the loan = 9.50 percent. Ca..

User Account

All Pages