Tech Corp had gross sales of $9 million and total ex- penses of $8.5 million. Assume that Tech wants to undertake a capital investment of $1 million. What is the minimum amount of bonds it would have to issue to do so? Assume that Tech pays out $300,000 in dividends. Now what is the minimum amount it would have to borrow?
Tech Corp had gross sales of $9 million and total ex- penses of $8.5 million. Assume that Tech wants to undertake a capital investment of $1 million. What is the minimum amount of bonds it would have to issue to do so? Assume that Tech pays out $300,000 in dividends. Now what is the minimum amount it would have to borrow?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Tech Corp had gross sales of $9 million and total ex-
of $8.5 million. Assume that Tech wants to
penses
undertake a capital investment of $1 million. What
is the minimum amount of bonds it would have to
issue to do so? Assume that Tech pays out $300,000
in dividends. Now what is the minimum amount it
would have to borrow?
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