1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ivolga24 [154]
3 years ago
10

A firm issues $300 million in straight bonds at an original issue discount of 0.50% and a coupon rate of 7%. The firm pays fees

of 2.0% on the face value of the bonds. The net amount of funds that the debt issue will provide for the firm is closest to which of the following?
A)$248,625,000
B)$263,250,000
C)$277,875,000
D)$292,500,000
Business
1 answer:
Aleksandr-060686 [28]3 years ago
7 0

Answer: $292,500,000

Explanation:

The following information can be derived from the question:

Issued bond = $300

Issue discount = 0.50%

Coupon rate = 7%.

Fees paid = 2.0%

The net amount of funds that the debt issue will provide for the firm will be:

= Issued bond price - Discount - Fees paid

= $300m - ($300m × 0.50%) - ($300m × 2.0%)

= $300m - $1.5m - $6m

= $300m - $7.5m

= $292.5 Million

You might be interested in
If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts are
MrMuchimi
<span>If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts are MONEY.</span>
3 0
4 years ago
The fact that universal technical standards for the internet and electronic commerce exist lowers ________ costs, making it chea
olasank [31]

The fact that universal technical standards for the internet and electronic commerce exist lowers market entry costs, making it cheaper for merchants to sell their goods.

The universal technical standards of the web and e-commerce greatly lower market entry costs- the value merchants must pay simply to bring their goods to promote.

At the same time, for consumers, universal standards reduce search costs- the hassle required to seek out suitable products when businesses sell products, services or information to consumers.

Internet technology reduces information costs and raises quality of knowledge, enabling price transparency (the ease for consumers of finding a spread of prices) and price transparency (the ability of consumers to work out the particular costs of products). data to execute these transactions.

As social bookmarking systems are growing in popularity, search algorithms are developed that transfer the concept of link-based rankings within the Web to a social bookmarking system's organization. These rankings differ from traditional program rankings therein they incorporate the rating of users.

A universal standard means the standards that are shared by all nations round the world. The universal technical standards of e-commerce are a greatly lower market entry cost, which suggests the merchants must pay the prices of the products that they create to the market.

learn more about universal standard: brainly.com/question/14971225

#SPJ4

3 0
2 years ago
Which of the following is not a common type of meeting?
geniusboy [140]

Answer:

running is the answer for your question

5 0
4 years ago
Jane always finishes the work assigned to her before her team members. Her performance never dropped even when she was working o
iris [78.8K]

Answer: Rate buster

Explanation: Those employees that exceed their performance level beyond the agreed formal rate are called rate buster in scientific management. These are the workers who use their maximum ability while performing a job.

In the given case, Jane performs superior than her fellows even in case of difficult situations.

Hence, from the above we can conclude that Jane should be considered as a rate buster.

5 0
3 years ago
Which of the following is characteristic of games of chance?
Anton [14]

Answer:

B

Explanation: because none of the others  make sense

4 0
3 years ago
Other questions:
  • Name two different methods for evaluating evidence. compare and contrast these two methods.
    9·1 answer
  • For each of the following characteristics, say whether it describes a monopoly firm, a monopolistically competitive firm, both,
    8·1 answer
  • T or F 25 percent is a good interest rate on a used car?
    11·1 answer
  • Many employees get a reality shock on their first day at work because ____.
    5·1 answer
  • You have a loan outstanding. It requires making six annual payments of $ 6 comma 000 each at the end of the next six years. Your
    11·1 answer
  • On January 1, the Elias Corporation issued 10% bonds with a face value of $113,000. The bonds are sold for $110,740. The bonds p
    8·1 answer
  • Work experience should always be listed before education on a resume. True or false?
    9·2 answers
  • Imagine that you are the new human resources manager for a small hotel, and you plan to conduct an evaluation to determine the s
    12·1 answer
  • Sam is a human resource manager who recently switched jobs from the service industry to the manufacturing industry. When compari
    13·1 answer
  • Over time, inflation will cause a (5 points)
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!