Trajax, Inc., a high-technology firm in Portland, raised a total of $91 million in an IPO. The

Question:

Trajax, Inc., a high-technology firm in Portland, raised a total of $91 million in an IPO. The company received $27 of the $33 per share offering price. The firm’s legal fees, SEC registration fees, and other out-of-pocket costs were $450,000. The firm’s stock price increased 17 percent on the first day of trading. What was the total cost to the firm of issuing the securities?