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Foundations Of Financial Management
Found in: Page 495
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Short Answer

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

Size of Offer Public Price Net to Corporation

a. 1.1 million................. $30 $27.50

b. 7.0 million…………… $30 $28.44

c. 28.0 million………… $30 $29.15

What is the percentage underwriting spread for each size offer?

Percentage underwriting spread for offer:

  1. 8.33%
  2. 5.2%
  3. 2.83%
See the step by step solution

Step by Step Solution

Computation of percentage underwriting spread for offer a

Offer a.

Computation of percentage underwriting spread for offer b

Offer b.

Computation of percentage underwriting spread for offer c

Offer c.

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