Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Collins Co. has just gone public. Under a firm commitment agreement. Collins received $32.10 for each of the 4.11 million shares sold. The initial

image text in transcribed

The Collins Co. has just gone public. Under a firm commitment agreement. Collins received $32.10 for each of the 4.11 million shares sold. The initial offering price was $34.50 per share, and the stock rose to $41.20 per share in the first few minutes of trading. Collins paid $906.000 in legal and other direct costs and $252.000 in indirect costs (Enter your answer as directed, but do not round intermediate calculations.) What is the net amount raised? (Enter the whole number for your answer, not millions (e.g., 1, 234,567). Round your answer to the nearest whole number (e.g., 1, 234,567).) Net amount raised What are the total direct costs? (Enter the whole number for your answer, not millions (e.g., 1, 234,567). Round your answer to the nearest whole number (e.g., 1, 234,567).) Direct costs What are the total indirect costs? (Enter the whole number for your answer, not millions (e.g., 1, 234,567). Round your answer to the nearest whole number (e.g., 1, 234,567).) Indirect costs What are the total costs?(Enter the whole number for your answer, not millions (e.g., 1, 234,567). Round your answer to the nearest whole number (e.g., 1, 234,567).) Total costs 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 %

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

More Books

Students also viewed these Finance questions