Trump Card Co. will issue stock at a retail (public) price of $35.00. The company will receive $33.10 per share.

a. What is the spread on the issue in percentage terms? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. If the firm demands receiving a new price only $2.09 below the public price suggested in part a, what will the spread be in percentage terms? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Answer rating: 100% (QA)

Calculating the Spread a Spread at the public price of 3500 Spread Public pri... View the full answer