The West lands Co. has just gone public. Under a firm commitment agreement, the company received $21.39
Question:
The West lands Co. has just gone public. Under a firm commitment agreement, the company received $21.39 for each of the 12 million shares sold. The initial offering price was $23 per share, and the stock rose to $27.85 per share in the first few minutes of trading. The company paid $1,450,000 in direct legal and other costs and $375,000 in indirect costs. What was the flotation cost as a percentage of funds raised?
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We need to calculate the net amount raised and the costs associated with the offer The net amount ra...View the full answer
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Related Book For 
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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