Harper’s Dog Pens, Inc. with the help of its investment bank, recently issued $191.7 million of...
Harper’s Dog Pens, Inc. with the help of its investment bank, recently issued $191.7 million of new debt. The offer price on the debt was $1,000 per bond and the underwriter’s spread was 6 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.)
Homework Answers
| Amount of capital funding = 180,198,000 | |
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| Statement showing Computations | |
| Particulars | Amount |
| New Debt Issued | 191,700,000.00 |
| underwriter’s spread | 6.00% |
| amount of capital funding Harper’s Dog Pens raised through this bond issue = 191.7M*(100%-6%) | 180,198,000.00 |
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