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Finance

Problem:

The Fitness Studio, Inc., with the help of its investment bank, recently issued $43.265 million of new debt. The offer price (and face value) on the debt was $1,000 per bond and the underwriter's spread was 3 percent of the gross proceeds.

Required:

Question: Calculate the amount of capital funding The Fitness Studio raised through this debt offering.

Note: Please provide equation and explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162523

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