Determine the spread on the issue in percentage terms

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Reference no: EM132033433

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? (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 $2.20 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.)
.07

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?

Reference no: EM132033433

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