Suppose that a biotech firm in Pittsburgh raised $112 million in an IPO. The firm received $23 per share, and the stock sold to the public for $25 per share. The firm's legal fees, SEC registration fees, and other out-of-pocket costs were $250,000. The firm's stock price increased 17.5 percent on the first day. What was the total cost to the firm of issuing the securities? Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Total cost of issuing the securities $
Suppose that a biotech firm in Pittsburgh raised $112 million in an IPO. The firm received $23 per share, and the stock sold to the public for $25 per share. The firm's legal fees, SEC registration fees, and other out-of-pocket costs were $250,000. The firm's stock price increased 17.5 percent on the first day. What was the total cost to the firm of issuing the securities? Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Total cost of issuing the securities $
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 13P
Related questions
Question
Nikul
Transcribed Image Text:Suppose that a biotech firm in Pittsburgh raised $112 million in an IPO. The firm received $23 per share, and the stock sold to the
public for $25 per share. The firm's legal fees, SEC registration fees, and other out-of-pocket costs were $250,000. The firm's stock
price increased 17.5 percent on the first day. What was the total cost to the firm of issuing the securities?
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have
different values. When using this template, copy the problem statement from this screen for easy reference to the values you've
been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of
the problem.)
Total cost of issuing the securities
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT