Hopewell Drugstore plans to sell 50,000 bonds each with a face value of $1,000
If all of the bonds eventually sell for $975 each and the firm's investment banker receives a commission of 1.50% for every bond sold, what are the net proceeds to the firm from the sale of the bond issue?
A) $48,018,750
B) $43,415,250
C) $41,500,000
D) $40,875,750
Answer: A
Explanation: A) Net proceeds = (P) × (Q) × (1 - commission rate) = $975 × 50,000 × (1 - 0.015) = $48,018,750.
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