Question

Assume Sybase Software is thinking about three different size offerings for issuance of additional shares. Size of Offer Public Price Net to Corporation a. $ 1.9 million $ 49 $ 45.80 b. 11.0 million 49 46.55 c. 27.0 million 49 46.70 What is the percentage underwriting spread for each size offer? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Answer 1

a. Underwriting spread = ($49 − $45.80) / $49 = .0653, or 6.53%

b. Underwriting spread = ($49 − $46.55) / $49 = .0500, or 5.00%

c. Underwriting spread = ($49 − $46.70) / $49 = .0469, or 4.69%