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ACME Corporation has decided to go public. It is going to issue 5 0 millionshares. The underwriters acquired the shares for $ 2 4 .
ACME Corporation has decided to go public. It is going to issue millionshares. The underwriters acquired the shares for $ per share from ACME and soldthem to the public at an offering price of $ per share. By the end of the trading day the stocks had risen to $ per share. Acme also incurred $ million dollars in other legal and administrativeexpenses, in issuing the IPO. a What were the underwriting expenses of the ACME IPO? b What was the cost of underpricing? c What were the total Flotation Costs of the IPO? d What percentage of the market value of the shares did theflotation costs represent?
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