#8

Assume the underwriting spread is 5 percent. What SHould the plrice tw ul public be? 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 pric to the public be? Assume Sybase Software is thinking about three different size offerings for issu 7. 8. ance of additional shares