LiveBetter Can Choose Between the Two Following Issues

question 58

Essay

LiveBetter can choose between the two following issues:
a. A public issue of $10 million face value of 10-year debt. The interest rate on the debt would be 8.5% and the debt would be issued at face value. The underwriting spread would be 1.5% and other expenses would be $80,000.
b. A private placement of $10 million face value of 10-year debt. The interest rate on the debt would be 9% and the total issuing expenses would be $30,000.
Which deal should LiveBetter choose?

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Definitions:

Eating Patterns

The regular habits, practices, and behaviors one has around the consumption of food.

Social Rejection

The experience of being excluded or dismissed by others or a group, leading to psychological distress.

Decreased Self-Regulation

A reduction in one's ability to control or manage their emotions, desires, or actions effectively.

Increased Hunger

Describes a physiological state where there is an enhanced desire or need to consume food.