Question: ABC Inc. has a the capital structure shown below. Liabilities $122,099,000 Stockholders' Equity $95,228,000 ABC Inc. will raise additional capital for new projects this year,
ABC Inc. has a the capital structure shown below. Liabilities $122,099,000 Stockholders' Equity $95,228,000 ABC Inc. will raise additional capital for new projects this year, in the amount of $44,978,000. The firm believes, however, that a capital structure with 56.25% debt is ideal. The firm will be able to issue new discount bonds at a price of $909 with a yield-to-maturity of 3%. Assuming they want to change their capital structure to the new target, how many new bonds will the firm need to issue
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