Under a firm commitment agreement, Zeke, Company, went public and received $30.00 for each of the 6.8 million shares sold. The initial offer price was $32 and the stock rose to $34.25. 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 24.34% 14.60% 6.97% 19.89% 23.07%

Under a firm commitment agreement, Zeke, Company, went public and received $30.00 for each of the 6.8 million shares sold. The initial offer price was $32 and the stock rose to $34.25. 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 24.34% 14.60% 6.97% 19.89% 23.07%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

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

Section: Chapter Questions

Problem 16PROB

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