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Determining the bonds of dipitro paint and wallpaper

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Reference no: EM132097160

Problem:

DiPitro's Paint and Wallpaper, Inc., needs to raise $1.19 million to finance plant expansion. In discussions with its investment bank, DiPitro's learns that the bankers recommend a debt issue with gross proceeds of $1,000 per bond and they will charge an underwriter's spread of 7.5 percent of the gross proceeds.

Required:

How many bonds will DiPitro's Paint and Wallpaper need to sell in order to receive the $1.19 million it needs?

Reference no: EM132097160

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