Question
XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $61.7 each. The investment bank charged 7% spread. At
XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $61.7 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $76.08. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals Of Financial Management Concise
Authors: Eugene F. Brigham, Joel F. Houston
11th Edition
0357517717, 9780357517710
