Offerings for the issuance of additional shares


Problem: Assume Fisher Food Products is thinking about 3 different size offerings for the issuance of additional shares

Size offer Public Price Net to Corporation

a. 1.6 million $40 $36.70

b. 6.0 million 40 37.28

c. 25.0 million 40 38.12

What is the percentage underwriting spread for each size offer?

and

What principle does this demonstrate?

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Macroeconomics: Offerings for the issuance of additional shares
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