Trajax, Inc., a high-technology firm in Portland, raised a total of $90 million in an IPO. The

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Trajax, Inc., a high-technology firm in Portland, raised a total of $90 million in an IPO. The company received $27 of the $30 per share offering price. The firm’s legal fees, SEC registration fees, and other out-of-pocket costs were $450,000. The firm’s stock price increased 17 percent on the first day of trading. What was the total cost to the firm of issuing the securities?

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Fundamentals of Corporate Finance

ISBN: 978-1119371403

4th edition

Authors: Robert Parrino, David S. Kidwell, Thomas Bates

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