Calculating Flotation Costs Groene Heuvels NV has just gone public. Under a firm commitment agreement, Groene Heuvels
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Calculating Flotation Costs Groene Heuvels NV has just gone public. Under a firm commitment agreement, Groene Heuvels received €19.75 for each of the 5 million shares sold. The initial offering price was €21 per share, and the equity rose to €26 per share in the first few minutes of trading. Groene Heuvels paid €800,000 in direct legal and other costs and €250,000 in indirect costs.
What was the flotation cost as a percentage of funds raised?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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