The Wrigley Corporation needs to raise $44 million. The investment banking firm of Tinkers, Evers, & Chance

Question:

The Wrigley needs to raise $44 million. The investment banking firm of Tinkers, Evers, & Chance will handle the transaction.
a. If stock is utilized, 2,300,000 shares will be sold to the public at $20.50 per share.
The will receive a net price of $19 per share. What is the percentage underwriting spread per share?
b. If bonds are utilized, slightly over 43,700 bonds will be sold to the public at $1,009 per bond. The will receive a net price of $994 per bond. What is the percentage of underwriting spread per bond? (Relate the dollar spread to the public price.)
c. Which alternative has the larger percentage of spread? Is this the normal relationship between the two types of issues? Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...