What was the flotation cost as a percentage of funds raised

Assignment Help Finance Basics

Reference no: EM13288551

The Verbatim Co. has just gone public. Under a firm commitment agreement, Verbatim received $21.55 for each of the 6.64 million shares sold. The initial offering price was $23.40 per share, and the stock rose to $29.91 per share in the first few minutes of trading. Verbatim paid $914,000 in legal and other direct costs and $189,000 in indirect costs.

Required:

What was the flotation cost as a percentage of funds raised?

Reference no: EM13288551

Questions Cloud

Find the resulting output sequence of white random noise : x[n] is the input sequenceapplied to a digital filter whose impulse response h[n] is alsogiven below. Find the resulting output sequence,y[n]. Hint: There's a VERY easy way to solve thisproblem, and a way which is not so easy. If it seems hard,you..

What rate of return will be earned from the purchase : The land should be worth at least $60000 after 10 years. What rate of return will be earned from the purchase of the lot?

The total dose of the radioisotope did the patient receive : A nurse administered 3.50mL of a radioisotope solution that has an activity of 135pCi/mL. What total dose of the radioisotope did the patient receive

Obtain the height of the cliff : At t = 0, a stone is dropped from a cliff above a lake; 2.2 seconds later another stone is thrown downward from the same point with an initial speed of 48.0 m/s. Find the height of the cliff

What was the flotation cost as a percentage of funds raised : The initial offering price was $23.40 per share, and the stock rose to $29.91 per share in the first few minutes of trading. Verbatim paid $914,000 in legal and other direct costs and $189,000 in indirect costs.

What is the present value of this one-year loan : The interest rate is 6% APR with monthly compounding, and payments begin in one month. What is the present value of this one-year loan?

Plot the electron and hole concentrations for all x : A uniformly doped n-type silicon bar doped ND =1016/cm3 of length L is illuminated to create1011/cm3 excess electron-hole pairs at x=0.The illumination wavelength does not allow the light to penetrateinto the interior (x>0) of the bar.

Find the velocity of the second ball after the collision : A billiard ball rolling across a table to the right at 1.4 m/s makes a head-on elastic collision with an identical ball. The mass of a billiard ball is 34 g. find the velocity of the second ball after the collision

How many shares need to be sold : If the offer price is $55 per share and the company's underwriters charge an 8.5 percent spread, how many shares need to be sold?

User Account

All Pages