Skyway Airlines will issue stock at a retail (public) price of $15. The company will receive $13.80 per share a. What is the spread on the issue in percentage terms? b. If Skyway airlines demands receiving a net price only $.75 below the oublic price suggested in part a, what will the spread be in percentage terms? c. To hold the spread down to 3 percent based on the public price in part a, what net amount should Skyway Airlines receive? Solution: Skyway airlines S Spread $1.20 Public Price $158% S Spread $.75 Public Price $15 C. Public price $1500 3% Spread 45 Net amount received $14.55 CopyrightC 2005 by The McGray-Hill Companies, Inc.Copyright © 2005 by The McGraw-Hill Companies, Inc. S-536 15-10. Skyway Airlines will issue stock at a retail (public) price of $15. The company will receive $13.80 per share. a. What is the spread on the issue in percentage terms? b. If Skyway Airlines demands receiving a net price only $.75 below the public price suggested in part a, what will the spread be in percentage terms? c. To hold the spread down to 3 percent based on the public price in part a, what net amount should Skyway Airlines receive? Solution: Skyway Airlines a. 8% $15 $1.20 Public Price $Spread = = b. 5% $15 $.75 Public Price $Spread = = c. Public Price $15.00 3% Spread .45 Net Amount Received $14.55