Homework Help is Here – Start Your Trial Now!
Business
Finance
Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.18 per share. On the first day of trading, the stock closed at $18.82 per share. If Margoles Publishing paid an underwriting spread of 6.5% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to it of going public? $5.5 million $7.2 million $9.7 million $3.1 million

Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.18 per share. On the first day of trading, the stock closed at $18.82 per share. If Margoles Publishing paid an underwriting spread of 6.5% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to it of going public? $5.5 million $7.2 million $9.7 million $3.1 million

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 2P
See similar textbooks
icon
Related questions
Question

Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.

Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.18 per share. On the first day of trading, the stock closed at $18.82 per share. If Margoles Publishing paid an underwriting spread of 6.5% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to it of going public? $5.5 million $7.2 million $9.7 million $3.1 million
Transcribed Image Text:Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.18 per share. On the first day of trading, the stock closed at $18.82 per share. If Margoles Publishing paid an underwriting spread of 6.5% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to it of going public? $5.5 million $7.2 million $9.7 million $3.1 million
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flows
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS