ABC Ltd, a high-technology company, issues a $25 million IPO with an offer price of $3...

 

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ABC Ltd, a high-technology company, issues a $25 million IPO with an offer price of $3 per share, underwritten at $2.82 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $278,000. The company's share price increases by $0.45 on the first day. What is the company's total cost of issuing the securities (in millions of dollars to three decimal places; don't use $ sign eg $4.5766 million is 4.577)? (Remember to round the number of shares issued to a whole number) ABC Ltd, a high-technology company, issues a $25 million IPO with an offer price of $3 per share, underwritten at $2.82 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $278,000. The company's share price increases by $0.45 on the first day. What is the company's total cost of issuing the securities (in millions of dollars to three decimal places; don't use $ sign eg $4.5766 million is 4.577)? (Remember to round the number of shares issued to a whole number)

Answer rating: 100% (QA)

Number of share outstanding 2582000000 3 833333333 Total underwriting cost 3282 83333333 14999999... View the full answer