What were flotation costs as fraction of funds raised

Assignment Help Financial Management

Reference no: EM131980958

Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $8 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $12.00 per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?

Reference no: EM131980958

Questions Cloud

How much is the excess reserve ratio : How much is the currency ratio? How much is the excess reserve ratio? How much is the money multiplier?

Reduced tax rate on dividends affect mnc capital structure : Should the Reduced Tax Rate on Dividends Affect an MNC’s Capital Structure?

The purchase of a new machine for the production of latex : Renegade Industries is considering the purchase of a new machine for the production of latex.

Transactions for profit organization versus not-profit one : What are the major differences in recording transactions for a for-profit organization versus a not-for-profit one, or are there any?

What were flotation costs as fraction of funds raised : The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?

The allowance for uncollectible property taxes : All outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes.

What amount must you invest in account today : What amount must you invest in this account today to fund this annuity for 30 years (the 30th payment will zero out the account)?

What is the npv of this investment project : If the required rate of return is 12%, what is the NPV of this investment project? Should you accept the project?

What is the net present value of the project : If the cost to invest in this project is $8,200, what is the Net Present Value of the project? Should you accept the project?

User Account

All Pages