Question
A company makes an initial public offering of shares to raise $320 million, at an offer price of $4 per share. The issue is underwritten
A company makes an initial public offering of shares to raise $320 million, at an offer price of $4 per share.
The issue is underwritten at $3.90.
The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $800,000.
The firm's share price closes at $4.50 on its first day of trade.
What is the total cost of the IPO.
Wokring Please !!!
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
9th Canadian Edition
1259271935, 9781259271939
