CFIN -STUDENT EDITION-TEXT
6th Edition
ISBN: 9781337407359
Author: BESLEY
Publisher: CENGAGE L
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Chapter 3, Problem 13PROB
Summary Introduction
GM needs $95 million to support operations. To raise the needed funds, the firm issued bonds at $1,000 each bond. The flotation cost is 5%. Calculate the number of outstanding bonds to be issued.
Debt financing is the process of raising debt capital by issuing shares to investors due to short-term need or long-term goal or for the future growth of the firm.
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