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Assume the issuer incurs $ 1 million in other expenses to sell 3 million shares at $ 4 0 each to an underwriter and the

Assume the issuer incurs $

1

million in other expenses to sell

3

million shares at $

40

each to an underwriter and the underwriter sells the shares at $

43

each. By the end of the first day

s trading, the issuing company

s stock price had risen to $

70 .

What is the total flotation cost?

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