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In its IPO, 1 million company shares were issued at a price of $25 per share. The underwriter's fee for the offering was 10% of
In its IPO, 1 million company shares were issued at a price of $25 per share. The underwriter's fee for the offering was 10% of gross proceeds and the issuer incurred direct out-of-pocket costs of $400,000. In the aftermarket on the first day of trading the closing share price was $30. What was the total issue cost as a percent of the issuers proceeds net of all costs?
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