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What were flotation costs as a fraction of funds raised

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Point 1: Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $8 per share. The underwriting spread was $0.40 a share. The price of the stock closed at $14.00 per share at the end of the first day of trading. The firm incurred $200,000 in legal, administrative, and other costs.

Question 1: What were flotation costs as a fraction of funds raised?

Reference no: EM132485912

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