The company paid 907000 in legal and other direct costs and, Financial Management

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The company paid 907000 in legal and other direct costs and

The Collins Co. has just gone public. Under a firm commitment agreement, the company received $32.20 for each of the 4.12 million shares sold. The initial offering price was $34.60 per share, and the stock rose to $41.40 per share in the first few minutes of trading. The company paid $907,000 in legal and other direct costs and $254,000 in indirect costs.

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

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Financial Management: The company paid 907000 in legal and other direct costs and

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Financial Management: The company paid 907000 in legal and other direct costs and

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