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Under a firm commitment agreement, Zeke, Co. went public and received $32.75 for each of the 7.9 million shares sold. The initial offer price was
Under a firm commitment agreement, Zeke, Co. went public and received $32.75 for each of the 7.9 million shares sold. The initial offer price was $35 and the stock rose to $38.18. The company paid $560,000 in direct flotation costs and $215,000 in indirect costs. What was the flotation cost as a percentage of funds raised?
Multiple Choice
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7.11%
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25.81%
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22.22%
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27.22%
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16.93%
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