What is the total cost to drk of the equity issue

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Reference no: EM131969339

DRK, Inc., has just sold 230,000 shares in an initial public offering. The underwriter’s explicit fees were $138,000. The offering price for the shares was $34, but immediately upon issue, the share price jumped to $34.50.

a. What is the total cost to DRK of the equity issue?

Total cost            $

b. Is the entire cost of the underwriting a source of profit to the underwriters?

Yes

No

Reference no: EM131969339

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