Question: Assume Safeguard Detective Company is thinking about three different size offerings for the issuance of additional shares.
Size of offer Public Price Net to Corporation
a. $1.5 million $50 $46.10
b. $5.5 million $50 $46.80
c. $20.0 million $50 $48.15
What is the percentage underwriting spread for each size offer?
What principle does this demonstrate?