number 8 please

their shares? spread (LO15 Solar Energy Corp. has $4 million in earnings with 4 million shares outstanding. Investment bankers think the stock can justify a P/E ratio of 21. Assume the underwriting spread is 5 percent. What should the price to the public be? 6. Under sprea (LO Tiger Golf Supplies has s25 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 price to the public be? 7. R Un 8. Assume Sybase Software is thinking about three different size offerings for issu- Spr ance of additionsl shares. (Le Part 5 Long-Term Financing Size of Offer a. 1.1 million.... b. 7.0 million c. 28.0 million .. Public Price $30 $30 $30 Net to Corporation $27.50 28.44 29.15 What is the percentage underwriting spread for eacn size offer? Walton and Company is the managing investment banker for a major new underwriting. The price of the stock to the investment banker is $23 per share. Other syndicate members may buy the stock for $24.25. The price to the selected dealers group is $24.80, with a price to brokers of $25.20. Finally, the price to the public is $29.50. a. If Walton and Company sells its shares to the dealer group, what will the riting 9. 2) percentage return be? b. If Walton and Company performs the dealer's function also and sells to brokers, what will the percentage return be