The Verbatim Co. has just gone public. Under a firm commitment agreement, Verbatim received $20.15 for each
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The Verbatim Co. has just gone public. Under a firm commitment agreement, Verbatim received $20.15 for each of the 6.5 million shares sold. The initial offering price was $22 per share, and the stock rose to $28.51 per share in the first few minutes of trading. Verbatim paid $900,000 in legal and other direct costs and $175,000 in indirect costs. What was the flotation cost as a percentage of funds raised?
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We need to calculate the net amount raised and the costs associated with the offer The net amount ra...View the full answer
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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