The Wrigley Corporation needs to raise $26 million. The investment banking firm of Tinkers, Evers & Chance will handle the transaction. a. If stock is utilized, 2,200,000 shares will be sold to the public at $13.25 per share. The corporation will receive a net price of $12.00 per share. What is the percentage underwriting spread per share? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Underwriting spread per share
b. I bonds are utilized, slightly over 26 400 bonds will be sold to the public at $ 008 per bond. The portion will rece ve a net price of 99 per ond. nhat ste er en age 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.) Underwriting spread per bond
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?
A. Yes
B. No