Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.18 per share. On the first day of trading, the stock closed at $18.82 per share. If Margoles Publishing paid an underwriting spread of 6.5% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to it of going public? $5.5 million $7.2 million $9.7 million $3.1 million

Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.18 per share. On the first day of trading, the stock closed at $18.82 per share. If Margoles Publishing paid an underwriting spread of 6.5% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to it of going public? $5.5 million $7.2 million $9.7 million $3.1 million

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter26: Mergers And Corporate Control

Section: Chapter Questions

Problem 7MC

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