Solar Audio Sound Engineering Company needs to raise some funds to pay for expansion. They issue...
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Solar Audio Sound Engineering Company needs to raise some funds to pay for expansion. They issue $18,000,000 worth of 11 year debentures paying interest at 11% pa payable semi-annually. When the debentures are issued, interest rates in the debt-capital market are j2 = 11.25% pa compounded semi-annually. Calculate the amount of capital raised. Give your answer in dollars and cents to the nearest cent. Solar Audio Sound Engineering Company needs to raise some funds to pay for expansion. They issue $18,000,000 worth of 11 year debentures paying interest at 11% pa payable semi-annually. When the debentures are issued, interest rates in the debt-capital market are j2 = 11.25% pa compounded semi-annually. Calculate the amount of capital raised. Give your answer in dollars and cents to the nearest cent.
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To calculate the amount of capital raised by issuing the debentures we need to use the present value ... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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