Deep Hollow Oil issued 135,000 shares of stock last week. The underwriters charged a spread of 8.05 percent in exchange for agreeing to a firm commitment. The legal and accounting fees amounted to $418,000 and the company incurred $48,000 in indirect costs. The offer price was $33 a share. Within the first hour of trading, the stock price increased to $36 a share. What was the flotation cost as a percentage of the funds raised?

28.89 percent

33.03 percent

26.47 percent

20.55 percent

33.87 percent

A company has the following account balances. Which statement is correct concerning these balances? Account Balance Balance Accounts receivable $16,400 $17,S00 Accounts payable 20,300 24,400 63,600 60,100 Inventory Long-tem debt 127 500 125 S00 212,400 215,900 Common stock O Accounts receivable is a $1.400 source of cash. O Common stock is a $3.500use of cash. O Net working capital, excluding cash, is a $6.100 use of cash. O Long-term debt is a $1700 source of cash. O Total debt is a $2,400 source of cash