Question
The Collins Co. has just gone public. Under a firm commitment agreement, Collins received $33.40 for each of the 4.24 million shares sold. The initial
The Collins Co. has just gone public. Under a firm commitment agreement, Collins received $33.40 for each of the 4.24 million shares sold. The initial offering price was $35.80 per share, and the stock rose to $43.80 per share in the first few minutes of trading. Collins paid $919,000 in legal and other direct costs and $278,000 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).) |
Flotation cost percentage | % |
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