Hopewell Drugstore plans to sell 50,000 bonds each with a face value of $1,000
If all of the bonds eventually sell for $975 each and the firm's investment banker receives a commission of 1.50% for every bond sold, what are the net proceeds to the firm from the sale of the bond issue?
A) $48,018,750
B) $43,415,250
C) $41,500,000
D) $40,875,750
Answer: A
Explanation: A) Net proceeds = (P) × (Q) × (1 - commission rate) = $975 × 50,000 × (1 - 0.015) = $48,018,750.
You might also like to view...
A company uses sales representatives for selling the company's more complex and customized products to large accounts, while using inside salespeople and Web ordering for low-end selling
Which of the following describes the company's sales force best? A) demand creators B) direct marketing force C) missionary sellers D) technical sales force E) leveraged sales force
Laws regarding rights to privacy are similar for people in the limelight as they are for the ordinary citizen
Indicate whether the statement is true or false
At the break-even point,
A) total revenue equals total cost B) profit equals zero C) total contribution margin equals total fixed cost D) all of these are true E) margin of safety is zero
____________________ language does not discriminate against individuals or groups on the basis of their sex, ethnicity, disability, race, sexual orientation, or age
Fill in the blank(s) with correct word