Compute the amount of capital funding the fitness studio

Assignment Help Finance Basics
Reference no: EM13477700

The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.185 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriter's spread was 6 percent of the gross proceeds.

Calculate the amount of capital funding The Fitness Studio raised through this debt offering. (Enter your answer in dollars not in millions.)

Reference no: EM13477700

Questions Cloud

Picture yourself as the nations czar on fire prevention you : 1picture yourself as the nations czar on fire prevention. you have the power and responsibility to do what is necessary
Describe why the old non integrated functional system : case dollar general uses integrated softwaredollar general dollargeneral.com operates more than 8000 general stores in
A loan commitment of 442 million has an up-front fee of 35 : a loan commitment of 4.42 million has an up-front fee of 35 basis points and a back-end fee of 25 basis points. the
Is this an ethical question or just a matter of office : as a new systems analyst at premier financial services you are getting quite an education. youreport to mary the it
Compute the amount of capital funding the fitness studio : the fitness studio inc. with the help of its investment bank recently issued 43.185 million of new debt. the offer
The security guard reports that they are gang members : a call comes over dispatch that a security guard at a shopping mall in a predominantly white neighborhood has seen four
Find investment company earnings come from capital gains : 1. bonds issued without coupons are called coupon bonds.a. nob. negativec. zerod. unsecured2. with respect to the
Describe the three levels of corporate culture as a leader : 1what are the stages of personal diversity awareness? how might this be affected as the organization you work for
What hazardous situations are you and your team facing and : the scenarioyou are back at your plant the monday after the dangerous when wet leaking tanker incident happened and you

Reviews

Write a Review

Finance Basics Questions & Answers

  Modigliani miller model to find firm value

Suppose there are two firms operating in the same industry. The two firms are almost identical. The only difference is their capital structure. Firm UU has only equity while firm LL has 30% of debt and 70 percent of equity.

  Calculate the installments of payout for a trust fund

John is the beneficiary of a trust fund set up for him through his grandmother. If the trust fund amounts to $20,000 earning 8 percent compounded semiannually

  What coupon rate should be set on the bonds

What coupon rate should be set on the bonds-with-warrants so that the package would sell for $1,000?

  What amount will kate need as a down payment

Taking into consideration the fact that the $98,000 home price will grow at 4% per year, what will be the future median home selling price in Lakewood in eight years? What amount will Kate need as a down payment?

  What is the amount of the initial cash flow

Other equipment costing $514,000 will also be required. What is the amount of the initial cash flow for this expansion project? please show all work thanks!

  What is the current value of a share of common stock

Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years for $72.

  What are the cash inflows through the eight years

Explain in detail, what are the cash inflows through the eight years, and in which is the incremental cash outflow to time 0?

  Finance based multiple choice questions

A coffee corporation has buying operations in New York, production facilities in three roasting plants scattered throughout the Midwest and marketing functions in Texas.

  How much interest will the cash manager receive

A cash manager purchases $1 million face value semi-annual pay AAA corporate bonds that pay 8% annually. How much interest will the cash manager receive in one month when the bond pays its stated coupon?

  What is the expected return on them

what is the expected return on them? Assume that interest compounds semiannually on similar coupon paying bonds.

  What is the weighted average cost of capital

The firm has a beta of 1.48 and a tax rate of 30 percent. What is the weighted average cost of capital?

  What is abc cost of external equity

ABC Co. has a current dividend of $1.80. Dividends are expected to grow at a rate of 7% a year into the foreseeable future. What is ABC's cost of external equity if its shares can be sold to net $46 a share?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd