Question: Calculating Costs of Issuing Debt The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.125 million of new debt. The offer

Calculating Costs of Issuing Debt The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.125 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwrit- er's spread was 7 percent of the gross proceeds. Calculate the amount of capital funding The Fitness Studio raised through this debt offering. (LG4)

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