What were flotation costs as a fraction of funds raised

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Moonscape has just completed an initial public offering. The firm sold 6 million shares at an offer price of $12 per share. The underwriting spread was $.30 a share. The price of the stock closed at $18 per share at the end of the first day of trading. The firm incurred $100,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?

Reference no: EM131021925

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