Question: Trump Card Co will issue stock at a retail public

Trump Card Co. will issue stock at a retail (public) price of $32. The company will receive $29.20 per share.
a. What is the spread on the issue in percentage terms?
b. If the firm demands receiving a new price only $2.20 below the public price suggested in part a, what will the spread be in percentage terms?
c. To hold the spread down to 2.5 percent based on the public price in part a, what net amount should Trump Card Co. receive?

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  • CreatedOctober 14, 2014
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