Just Add Water, Inc

Multiple Choice

Just Add Water, Inc., with the help of its investment bank recently issued $45,000,000 of new debt. The offer price on the debt was $1,000 per bond and the underwriter's spread was 3 percent of the gross proceeds. What amount of capital funding did Just Add Water raise through this bond issue?

A) $1,350,000
B) $43,650,000
C) $45,000,000
D) $46,350,000