Business, 10.07.2019 00:10 kristinbohannan
The wrigley corporation needs to raise $38 million. the investment banking firm of tinkers, evers & chance will handle the transaction. a. if stock is utilized, 1,900,000 shares will be sold to the public at $21.00 per share. the corporation will receive a net price of $20.00 per share. what is the percentage underwriting spread per share? b. if bonds are utilized, slightly over 38,000 bonds will be sold to the public at $1,010 per bond. the corporation will receive a net price of $996 per bond. what is the percentage of underwriting spread per bond? (relate the dollar spread to the public price.) (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) c-1. which alternative has the larger percentage of spread? (stock/bond) c-2. is this the normal relationship between the two types of issues?
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The wrigley corporation needs to raise $38 million. the investment banking firm of tinkers, evers &a...
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