Renee's Boutique, Inc., needs to raise $58.13 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 6.5 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 $ 6.5 m How many bonds will Renee's Boutique need to sell in order to receive the $58.13 million It needs? (Do not round Intermediate calculations and round your final answer to the nearest whole number.)
Renee's Boutique, Inc., needs to raise $58.13 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 6.5 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 $ 6.5 m How many bonds will Renee's Boutique need to sell in order to receive the $58.13 million It needs? (Do not round Intermediate calculations and round your final answer to the nearest whole number.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Renee's Boutique, Inc., needs to raise $58.13 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 6.5 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
$ 6.5 m
How many bonds will Renee's Boutique need to sell in order to receive the $58.13 million
It needs? (Do not round Intermediate calculations and round your final answer to the
nearest whole number.)
Number of bonds
bonds
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