DRK, incorporated, has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44. What is the total cost to DRK of the equity issue?

Corporate Financial Accounting
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ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
ChapterD: Investments
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DRK, incorporated, has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44. What is the total cost to DRK of the equity issue?
H3 Exercises i
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DRK, Incorporated, has just sold 100,000 shares in an initial public offering. The underwriter's explicit fees were $60,000. The o
price for the shares was $40, but immediately upon issue, the share price jumped to $44.
Required:
a. What is the total cost to DRK of the equity issue?
moints
Transcribed Image Text:H3 Exercises i Saved 1 DRK, Incorporated, has just sold 100,000 shares in an initial public offering. The underwriter's explicit fees were $60,000. The o price for the shares was $40, but immediately upon issue, the share price jumped to $44. Required: a. What is the total cost to DRK of the equity issue? moints
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