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Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $10 per share. The underwriting spread
Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $10 per share. The underwriting spread was $0.60 a share. The price of the stock closed at $14.00 per share at the end of the first day of trading. The firm incurred $200,000 in legal, administrative, and other costs. What were floatation costs as a fraction of funds raised?
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