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Accounting

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: Explain all steps comprehensively.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173287

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