Under a firm commitment agreement, Zeke, Company, went public and received $30.00 for each of the 6.8 million shares sold. The initial offer price was $32 and the stock rose to $34.25. The company paid $560, 000 in direct flotation costs and $215,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Multiple Choice 24.34% 14.60% 6.97% 19.89% 23.07%
Under a firm commitment agreement, Zeke, Company, went public and received $30.00 for each of the 6.8 million shares sold. The initial offer price was $32 and the stock rose to $34.25. The company paid $560, 000 in direct flotation costs and $215,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Multiple Choice 24.34% 14.60% 6.97% 19.89% 23.07%
Chapter3: The Financial Environment: Markets, Institutions And Investment Banking
Section: Chapter Questions
Problem 16PROB
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Under a firm commitment agreement, Zeke, Company, went public and received $30.00 for each of the 6.8 million shares sold. The initial offer price was $32 and the stock rose to $34.25. The company paid $560, 000 in direct flotation costs and $215,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Multiple Choice 24.34% 14.60% 6.97% 19.89% 23.07%
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