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Assume Sybase Software is thinking about three different size offerings for issuance of additional shares. Size...

Assume Sybase Software is thinking about three different size offerings for issuance of additional shares. Size of Offer Public Price Net to Corporation 1.1 million $30 $27.50 b. 7.0 million $30 28.44 c. 28.0 million $30 29.15 What is the percentage underwriting spread for each size offer?
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Sl No size of Offer Public Price (a) Net Corporation (b) underwriting discount (a-b=c) Formula to Calculate percentate Value applied with Formulat % of Underwriting discount
a) 1.1 million $30                               27.50 $2.50 Underwriting Discount / Public Price*100 2.5/30*100 8.33%
b) 7 million $30                               28.44 $1.56 Underwriting Discount / Public Price*100 1.56/30*100 5.20%
c) 28 million $30 29.15 $0.85 Underwriting Discount / Public Price*100 0.85/30*100 2.83%
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