The Telwar Company has just gone public. Under a firm commitment agreement, the company received $32.90 for each of the 4.19 million shares sold. The initial offering price was $35.30 per share, and the stock rose to $42.80 per share in the first few minutes of trading. The company paid $914,000 in legal and other direct costs and $268,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Flotation cost percentage

The Telwar Company has just gone public. Under a firm commitment agreement, the company received $32.90 for each of the 4.19 million shares sold. The initial offering price was $35.30 per share, and the stock rose to $42.80 per share in the first few minutes of trading. The company paid $914,000 in legal and other direct costs and $268,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Flotation cost percentage

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter3: The Financial Environment: Markets, Institutions And Investment Banking

Section: Chapter Questions

Problem 15PROB

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