HomeworkLib
Question

ABC Corp is issuing 525 thousand bonds at a price of $1000 each. Their underwriting syndicate...

ABC Corp is issuing 525 thousand bonds at a price of $1000 each. Their underwriting syndicate charges them 6.65% of the total and a $3.2 million fee. How much does ABC receive from the issue? Enter your answer in millions of dollars.
Selected Answer:

Incorrect 114,317,805.06
Correct Answer:

Correct 486.89 ± 0.1
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Amount actually received = Number of bond*price *(1-Underwriting charge) -3200,000

= 525000*1000*(1-6.65%)-3200000

= 490087500-3200000

= 486887500

or

486.89 million

0 0
Add a comment
Know the answer?
Add Answer to:
ABC Corp is issuing 525 thousand bonds at a price of $1000 each. Their underwriting syndicate...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Can you answer only question 5and 6 Questions: 1. How could the promotion of UK Hoover...

    Can you answer only question 5and 6 Questions: 1. How could the promotion of UK Hoover have been better designed? Be as specific as you can. 2. Given the fiasco that did occur, how do you think Maytag should have responded? 3. Comment on the following statement: “Firing the three top executives of UK Hoover is unconscionable. It smacks of a vendetta against European managers by an American parent. After all, their only ‘crime’ was a promotion that was too...

  • Please see the articles below… 1.  What is your opinion on the subject? 2.  Which ethical views (i.e.,...

    Please see the articles below… 1.  What is your opinion on the subject? 2.  Which ethical views (i.e., utilitarian view, moral rights view, justice view, practical view) you feel are being used by both sides of the argument (i.e., for and against downloading) to justify their positions? High Court Enters File-Sharing Spat; Justices Must Determine Software Providers' Liability For Copyright Violations by Anne Marie Squeo. Wall Street Journal. (Eastern edition). New York, N.Y.: Mar 30, 2005. pg. A.2 WASHINGTON -- The Supreme...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT