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A company makes an initial public offering of shares to raise $350 million, at an offer price of $5 per share. The issue is underwritten
A company makes an initial public offering of shares to raise $350 million, at an offer price of $5 per share. The issue is underwritten at $4.70. The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $750,000. If the firms share price closes at $5.20 on its first day of trade. What is the total cost of the IPO?
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