Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $12 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $18.00 per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Flotation cost as percent of funds raised %
Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $12 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $18.00 per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Flotation cost as percent of funds raised %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price
of $12 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $18.00
per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and
other costs. What were flotation costs as a fraction of funds raised?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal
places.
Flotation cost as percent of funds raised
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69fb9f20-a08c-4299-b234-d97b53531486%2Fcd926d41-6f4b-4b71-9f02-a98c5fb128e7%2Fjc1j639_processed.png&w=3840&q=75)
Transcribed Image Text:Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price
of $12 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $18.00
per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and
other costs. What were flotation costs as a fraction of funds raised?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal
places.
Flotation cost as percent of funds raised
%
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