Renee's Boutique, Inc

question 30

Multiple Choice

Renee's Boutique, Inc., needs to raise $300 million to finance firm expansion. In discussions with its investment bank, Renee's 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:

Optimal Solution

An Optimal Solution refers to the best possible outcome or decision from a set of alternatives, often identified through processes like optimization in mathematics and computer science.

Transportation Model

A mathematical technique used for determining the optimal transportation route or method for minimizing cost and maximizing efficiency.

Optimum Solution

refers to the most favorable or best possible outcome or solution among various possibilities, often in the context of problem-solving or decision-making.

Minimization Problem

A type of optimization issue aimed at finding the lowest possible value of a function given a set of constraints.