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?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 23:10, SmokeyRN

Kando company incurs a $9 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. instead of manufacturing and selling this product, the company can purchase product b for $5 per unit and sell it for $12 per unit. if it does so, unit sales would remain unchanged and $5 of the $9 per unit costs assigned to product a would be eliminated. 1. prepare incremental cost analysis. should the company continue to manufacture product a or purchase product b for resale? (round your answers to 2 decimal places.)

Answers: 1

continue

Business, 22.06.2019 11:00, pum9roseslump

While on vacation in las vegas jennifer, who is from utah, wins a progressive jackpot playing cards worth $15,875 at the casino royale. what implication does she encounter when she goes to collect her prize?

Answers: 1

continue

Business, 22.06.2019 15:40, brashley

Acompany manufactures x units of product a and y units of product b, on two machines, i and ii. it has been determined that the company will realize a profit of $3 on each unit of product a and $4 on each unit of product b. to manufacture a unit of product a requires 7 min on machine i and 5 min on machine ii. to manufacture a unit of product b requires 8 min on mchine i and 5 min on machine ii. there are 175 min available on machine i and 125 min available on machine ii in each work shift. how many units of a product should be produced in each shift to maximize the company's profit p?

Answers: 2

continue

Business, 22.06.2019 19:50, leannamat2106

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)

Answers: 2

continue

You know the right answer?

The wrigley corporation needs to raise $38 million. the investment banking firm of tinkers, evers &a...