Moonscape has just completed an initial public offering. The firm sold 6 million shares at an offer price of $6 per share. The underwriting spread was $0.40 a share. The price of the stock closed at $9.00 per share at the end of the first day of trading. The firm incurred $100,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Moonscape has just completed an initial public offering. The firm sold 6 million shares at an offer price of $6 per share. The underwriting spread was $0.40 a share. The price of the stock closed at $9.00 per share at the end of the first day of trading. The firm incurred $100,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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