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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? 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? c. 14. Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the company that the retail price will be $16.85 per share for 550,000 shares. The company will receive $15.40 per share and will incur $180,000 in registration, accounting, and printing fees. (L What is the spread on this issue in percentage terms? What are the total s of the issue as a percentage of total value (at retail)? a. expense If the firm wanted to net $15.99 million from this issue, how many shares must be sold? b. Intermediate Problems 15. Richmond Rent-A-Car is aboni to go public. The investment banking firm of Tinkers, Evers& Chance is attempting to price the issue. The car rental indus- try generally trades at a 20 percent discount below the P/E ratio on the Standard & Poor's 500 Stock Index. Assume that index currently has a P/E ratio of 25. The firm can be compared to the car rental industry as follows: Car Rental Industry 10% Richmond 1506