"The Wrigley Corporation needs to raise $44 million. The investment banking firm of Tinkers, Evers, & Chance will handle the transaction. a. If stock is utilized, 2,300,000 shares will be sold to the public at $20.50 per share. The corporation will receive a net price of $19 per share. What is the percentage underwriting spread per share? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If bonds are utilized, slightly over 43,700 bonds will be sold to the public at $1,009 per bond. The corporation will receive a net price of $994 per bond. What is the percentage of underwriting spread per bond? (Relate the dollar spread to the public price.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c-1. Which alternative has the larger percentage of spread? c-2. Is this the normal relationship between the two types of issues?" Funds needed $44,000,000 a. Number of shares 2,300,000 a. Selling price of stock $20.50 a. Net stock price $19.00 b. Number of bonds 43,700 b. Selling price of bond $1,009.00 b. Net bond price $994.00 Enter answers in the highlighted areas below. Solutions: a. If stock is utilized, 2,300,000 shares will be sold to the public at $20.50 per share. The corporation will receive a net price of $19 per share. What is the percentage underwriting spread per share? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dollar spread Percentage spread b. If bonds are utilized, slightly over 43,700 bonds will be sold to the public at $1,009 per bond. The corporation will receive a net price of $994 per bond. What is the percentage of underwriting spread per bond? (Relate the dollar spread to the public price.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Dollar spread Percentage spread c-1. Which alternative has the larger percentage of spread? c-2. Is this the normal relationship between the two types of issues?

	Funds needed	$44,000,000
	a. Number of shares	2,300,000
	a. Selling price of stock	$20.50
	a. Net stock price	$19.00
	b. Number of bonds	43,700
	b. Selling price of bond	$1,009.00
	b. Net bond price	$994.00
	Enter answers in the highlighted areas below.
	Solutions:
a.	If stock is utilized, 2,300,000 shares will be sold to the public at $20.50 per share. The corporation
	will receive a net price of $19 per share. What is the percentage underwriting spread per share?
	(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
	Dollar spread
	Percentage spread
b.	If bonds are utilized, slightly over 43,700 bonds will be sold to the public at $1,009 per bond.
	The corporation will receive a net price of $994 per bond. What is the percentage of underwriting
	spread per bond? (Relate the dollar spread to the public price.)
	(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
	Dollar spread
	Percentage spread
c-1.	Which alternative has the larger percentage of spread?
c-2.	Is this the normal relationship between the two types of issues?