Question: Lesla Inc. has just gone public. Under a firm commitment agreement. Lesia Inc. received 29.25 for each of the 3 million shares sold. The initial

Lesla Inc. has just gone public. Under a firm commitment agreement. Lesia Inc. received 29.25 for each of the 3 million shares sold. The initial offering price was $31.30 per share, and the stock rose to $37.25 per share in the first few minutes of trading, Lesla Inc. paid $390,000 in direct legal and other costs, and $133,000 in indirect costs. What was the flotation cost as a percentage of funds raised? Multiple Choice 29.24% 26,99% 28.11% 20.62%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

True Or False Some perceive tort liability as a tax because it puts some people out of business, makes some products unaffordable, and hampers some governmental bodies in their delivery of services.

Help Save & Exit Su Lesla Inc. has just gone public. Under a firm commitment agreement, Lesla Inc. received 23.25 for each of the 4 million shares sold. The initial offering price was $24.41 per...

r The Collins Co. has just gone public. Under a firm commitment agreement, the company received $32.10 for each of the 4.11 million shares per share, and the stock rose to $4 sold. The initial...

State St. Co. The State St. Co. has just gone public. Under a firm commitment agreement, the company received $17.64 for each of the 3.2 million shares sold. The initial offering price was $22.50 per...

The Sugarland Co. has just gone public. Under a firm commitment agreement, the company received $32.80 for each of the 4.18 million shares sold. The initial offering price was $35.20 per share, and...

The Green Hills Co. has just gone public. Under a firm commitment agreement, Green Hills received $18.50 for each of the 20 million shares sold. The initial offering price was $22.80 per share, and...

1)The Zuri Co. needs to raise $65.6 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer...

2. The Huff Co. has just gone public. Under a firm commitment agreement, the company received $17.64 for each of the 3.2 million shares sold. The initial offering price was S22:50 per share, and the...

will 2. Southern Markets has announced a rights offer to raise $3,628,800. The company's stock currently sells for $26.80 per share, there are 675,000 shares outstanding, and one right will be...

Part III: State St. Co. The State St. Co. has just gone public. Under a firm commitment agreement, the company received $17.64 for each of the 3.2 million shares sold. The initial offering price was...

Hummingbird stores has just gone public under a firm commitment agreement the firm received a $38 for each of the 4.5 million shares sold the initial offering price was $40.25 per share the stock...

A 65-yearold woman and her 9-) grand daughter were in a train crash. the granddaughter sustained only minor injuries, but at the moment of impact her grandmother struck her nose sharply on the metal...

Imagine that a reactor converts all given mass into energy and that it operates at a power level of 10 9 watt. The mass of the fuel consumed per hour in the reactor will be (velocity of light, c = 3...

given that the engineering support work package has a level of effort EVM technique, what is the BCWP for the month of November? work package 8 engineering support uses an LOE EVM technique with BCWS...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".