Question
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.24 per share. On the first day oftrading, the stock closed
Felton Publishing recently completed its IPO. The stock was offered at a price of $13.24 per share. On the first day oftrading, the stock closed at $19.83 per share. If Felton Publishing paid an underwriting spread of 6.7% for its IPO and sold 13 millionshares, what was the total cost(exclusive ofunderpricing) to it of goingpublic?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
