The Wrigley Corporation needs to raise $36 million. The investment banking firm of Tinkers. Evers & Chance will handle the transaction.
a. If stock is utilized, 2, 400,000 shares will be sold to the public at $16.80 per share. The corporation will receive a net price of $15.00 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.)
b .If bonds are utilized, slightly over 36,000 bonds will be sold to the public at $1,009 per bond. The corporation will receive a net price of $993 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.)