How many bonds will renee boutique need to sell

Assignment Help Finance Basics

Reference no: EM132072237

Question: Renee's Boutique, Inc., needs to raise $58.01 million to finance firm expansion. In discussions with its investment bank, Renee's learns 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 5.5 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.)

Net proceeds to Renee's $ m

How many bonds will Renee's Boutique need to sell in order to receive the $58.01 million it needs? (Do not round intermediate calculations and round your final answer to the nearest whole number.)

Number of bonds bonds

Reference no: EM132072237

Questions Cloud

Perfect substitutes and perfect complements : Provide an original example of perfect substitutes and perfect complements.

What is the current selling price of bond : XYZ Inc. has issued a 30-year bond that pays semiannually with a 6% coupon rate. what is the current selling price of the bond?

Compute the npv of each alternative : Compute the NPV of each alternative. When required, round your computations and final answers to the nearest dollar.

Years the supply of circulation money : In the last few years the supply of circulation money has increased dramatically but inflation has remained low. Why?

How many bonds will renee boutique need to sell : Renee's Boutique, Inc., needs to raise $58.01 million to finance firm expansion. In discussions with its investment bank, Renee's learns that the bankers.

What is the yield to maturity of the bond : Suppose the following bond quote for IOU Corporation appears in the financial page of today’s newspaper. What is the yield to maturity of the bond?

Amount of people wanting free childcare : With supply and demand curves, do you have to have price? Or can you have amount of people instead of price, for a free product or service?

Discuss the nomenclature often used by departments : Departments of correction refer to prison gangs as security threat groups. Why do you think they don't just refer to them as gangs.

Demand curve for free health care where the amount of doctor : Doctors do not increase, so the supply curve is inelastic and is vertical at 100,000 doctors for example, yet the population has grown to 200,000 for example

User Account

All Pages