Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Telwar Company has just gone public. Under a firm commitment agreement, the company received $25.11 for each of the 30 million shares sold. The

image text in transcribed

The Telwar Company has just gone public. Under a firm commitment agreement, the company received $25.11 for each of the 30 million shares sold. The initial offering price was $27 per share, and the stock rose to $32.49 per share in the first few minutes of trading. The company paid $1.4 million in direct legal and other costs and $375,000 in indirect costs. What was the flotation cost as a percentage of funds raised? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Flotation cost %

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

Advanced Modelling In Mathematical Finance

Authors: Jan Kallsen, Antonis Papapantoleon

1st Edition

3319458736, 978-3319458731

More Books

Students also viewed these Finance questions