Question: How do I solve the question in the picture provided? What formulas do I use and steps do I take to solve the problem? Problem

How do I solve the question in the picture provided? What formulas do I use and steps do I take to solve the problem?

Problem 18-06 Calculating Costs of Issuing Debt (LG184) Harper's Dog Pens, Inc. with the help ofits investment bank, recently issued $194.3 million of new debt. The offer price on the debt was $1,000 per bond and the underwriter's spread was 5 percent of the gross proceeds. Calculate the amount of capital funding Harper's Dog Pens raised through this bond issue. (Enter your answer in dollars not in millions.)

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