What is the total cost to sezela limited

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Sezela Limited, has just sold 100 000 shares in an initial public offering. The underwriter's explicit fees were R60 000. The offering price for the shares was R40, but immediately upon issue, the share price jumped to R44.

a) What is the total cost to Sezela Limited of the equity issue?

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

Reference no: EM133253200

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