Question: ABC Inc. has a the Capital Structure shown below: Liabilities $111,733,000 Stockerholders' Equity $98,388,000 ABC Inc. will raise additional capital for new projects this year,

ABC Inc. has a the Capital Structure shown below:

Liabilities $111,733,000

Stockerholders' Equity $98,388,000

ABC Inc. will raise additional capital for new projects this year, in the amount $43,156,000. The firm believes, however, that a capital structure with 57.90% debt is ideal.

The firm will be able to issue new discount bonds at a price of $919 with a yield-to-maturirty of 5.00%

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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