Assume Sybase Software is thinking about three different size offerings for issu
ID: 2824457 • Letter: A
Question
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 ___________%
Explanation / Answer
percentage underwriting spread=(Pubilc price-Net to Corporation)/Pubilc price
Size of Offer Underwriting Spread a.1.9million (46-42.8)/46=6.96%(Approx). b.15million (46-43.28)/46=5.91%(Approx). c.26million (46-44.5)/46=3.26%(Approx).Related Questions
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