Renee's Boutique, Inc

question 33

Multiple Choice

Renee's Boutique, Inc., needs to raise $300 million to finance firm expansion. In discussions with its investment bank, Renee's Boutique learns that the bankers recommend a debt issue with an offer price of $1,000 per bond and they will charge an underwriter's spread of 7.125 percent of the gross price. How many bonds will Renee's Boutique need to sell in order to receive the $300 million they need?

• A) 302,396
• B) 329,048
• C) 316,947
• D) 323,015

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Definitions:

Organizational Role

The set of responsibilities, activities, and expectations associated with a specific position within an organization.

Expert Power

Power derived from having special information or expertise that is valued by an organization.

Legitimate Power

The authority to influence or control others based on a position of responsibility within an organization.

Army Officers

Army Officers are members of the military who hold positions of authority, responsible for leading soldiers, making strategic decisions, and ensuring the success of their missions.