The Wriglwy COmpany needs to raise 21 million The investment banking firm of Tinker Evers and Chance will handle transaction.
a= If stock is utilized 2100000 shares will be sold to the public for $11 per share The corp will recieve $10 per share
What is the % underwriting spread per share
b=If bonds are utilized slightly over 21000 bonds will be sold to the public for 1007 per bond Corporation will recieve $998 per bond What is the percentage
of underwriting spread per bond
c=WHich alternative has the largest % of spread
c2= Is this the normal relationship between the two types of issues?