Solve the problems using excel formula

A B C D E F G H K L P-6: Underwriting Spread (LO15-2) Solar Energy Corp. has $4 million in earnings with four million shares outstanding. Investment bankers think the stock can justify a P/E ratio of 21. Assume the underwriting spread is 5 percent. What should the price to the public be? N Given: Shares Public Net to 3 Outstanding Earnings EPS P/E Ratio Spread Price Firm 4 4,000,000 4,000,000 - 21 5.0% =Public Price*(1-Spread) Note: Spread is calculated based upon a Reduction from the Public Price (not a markup on the Firm Price); accordingly, if the Spread % is known, then it is Reduced from the Public Price to determing the Firm Price. P-7: Underwriting Spread (LO15-2) Tiger Golf Supplies has $25 million in earnings with 7 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 31. Assume there is an underwriting spread of 7.8 percent. What should the price to the public be? 7 8 Given: Shares Public Net to On Own 9 Outstanding Earnings EPS P/E Ratio Spread Price Firm 10 7,000,000 25,000,000 31 7.8% 11 P-8: Underwriting Spread (LO15-2) Assume Sybase Software is thinking about three different size offerings for issuance of additional shares (see 12 below). What is the percentage underwriting spread for each size offer? NOTE: Spread is decreased w/ high volume offerings 13 Given: Offer Public Net to On Own 14 Size Price Firm Spread Amt Spread % 15 1,100,000 30.00 27.50 16 7,000,000 30.00 28.44 17 28,000,000 30.00 29.15 18