Calculating Costs of Issuing Debt Soccer Games,Inc

question 24

Multiple Choice

Calculating Costs of Issuing Debt Soccer Games,Inc.,with the help of its investment bank recently issued $10 million of new debt.The offer price (and face value) on the debt was $1,000 per bond and the underwriter's spread was 5 percent of the gross proceeds.What is the amount of capital funding Soccer Games raised through this debt offering?

• A)$1,000
• B)$0.5 million
• C)$9.5 million
• D)$10 million

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Definitions:

Optimum Shovel Load

The ideal quantity of material a shovel can efficiently move at one time, maximizing productivity while minimizing physical strain and operational costs.

Operational Approach

A method of addressing problems or tasks focusing primarily on the practical and efficient achievement of objectives.

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The process of dealing with or controlling things or people, often within an organizational setting.

Henry L. Gantt

An American mechanical engineer and management consultant who developed the Gantt chart, a popular project management tool.