Question
Under a firm commitment agreement, a firm went public and received $95 for each of the 5,000 shares sold. The initial offer price was $100,
Under a firm commitment agreement, a firm went public and received $95 for each of the 5,000 shares sold. The initial offer price was $100, and the stock rose to $105 at the end of day 1. The firm paid $6,000 in other direct flotation costs and $400 in other indirect costs.
What was the total cost of the new issues?
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Linear Algebra A Modern Introduction
Authors: David Poole
3rd edition
9781133169574 , 978-0538735452
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