Assume Sybase Software is thinking about three different siz

Assume Sybase Software is thinking about three different size offerings for issuance of additional shares.

Size of Offer Public Price Net to Corporation

a. $ 1.9 million $ 46 $ 42.80

b. 15.0 million 46 43.28

c. 26.0 million 46 44.50

What is the percentage underwriting spread for each size offer? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Size of Offer Underwriting Spread

a. 1.9 million ____________%

b. 15 million ___________ %

c. 26 million ___________%

Solution

percentage underwriting spread=(Pubilc price-Net to Corporation)/Pubilc price