Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the correct Flotation cost percentage please as asked in the question. My answer of 8.13 is incorrect. PLEASE DO NOT ROUND INTERMEDIATE CALCULATIONS....as

image text in transcribed

I need the correct Flotation cost percentage please as asked in the question. My answer of 8.13 is incorrect.

PLEASE DO NOT ROUND INTERMEDIATE CALCULATIONS....as it explains in the problem

The Collins Co has just gone public Under a firm commitment agreement, Collins received $33.00 for each of the 4.20 million shares sold The initial offering pnce was $35.40 per share, and the slock rose fo $43 00 per share in the firsl few minutes of trading. Collins paid $915,000 in legal and other direct costs and $270,000 in indirect costs. (Enter your answer as directed, but do not round intermediate calculations.) Required: What was the flotation cost as a percentage of funds raised? (Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Rotation cost percentage 813 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Brian Watts

8th Edition

0712110720, 978-0712110723

More Books

Students also viewed these Finance questions

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago

Question

How does that affect your approach to complaint handling?

Answered: 1 week ago