The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.125 million of new

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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 underwriter’s spread was 7 percent of the gross proceeds. Calculate the amount of capital funding The Fitness Studio, Inc. raised through this debt offering.

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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