4. Find the flotation cost percentage The Sugarland Co. has just gone public. Under a firm commitment agreement, thecompany received $32.30 for each of the 4.13 million shares sold. The initial offeringprice was $34.70 per share, and the stock rose to $41.60 per share in the first fewminutes of trading. The company paid $908,000 in legal and other direct costs and$256,000 in indirect costs. What was the flotation cost as a percentage of funds raised?(Do not round intermediate calculations and enter your answer as a percent roundedto 2 decimal places, e.g., 32.16.)Flotation cost percentage

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Answered: The Sugarland Co. has just gone public.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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