Problem 3-14 (Algo) DRK, Incorporated, has just sold 190,000 shares in an initial public offering. The underwriter's explicit fees were $114,000. The offering price for the shares was $44, but immediately upon issue, the share price jumped to $48.50. Required: a. What is the total cost to DRK of the equity issue? Total cost

Problem 3-14 (Algo) DRK, Incorporated, has just sold 190,000 shares in an initial public offering. The underwriter's explicit fees were $114,000. The offering price for the shares was $44, but immediately upon issue, the share price jumped to $48.50. Required: a. What is the total cost to DRK of the equity issue? Total cost

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 1P: Profit or Loss on New Stock Issue Security Brokers Inc. specializes in underwriting new issues by...

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