Question
NewCorp, Inc. just sold 700,000 shares in a public offering for an offering price of $24 per share. The underwriting fee was 7.50% of the
NewCorp, Inc. just sold 700,000 shares in a public offering for an offering price of $24 per share. The underwriting fee was 7.50% of the issues total value based on the offering price. As soon as the shares were issued, the price jumped to $36 per share.
What are the explicit, implicit, and total costs of the issue?
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Handbook Of Financial Risk Management
Authors: Thierry Roncalli
1st Edition
1138501875, 978-1138501874
