High Mountain Gear issued 200,000 shares of stock last week. The underwriters charged a spread of 4.9 percent in exchange for agreeing to a firm commitment. The legal and accounting fees were $372,636. The company incurred $36,787 in indirect costs. The offer price was $17 a share. Within the day of of trading, the stock was selling for $24 a share. What was the flotation cost?

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Flotation Cost Calculation for High Mountain Gear The flotation cost represents the total expen... View the full answer