Question: Problem #2 (4 marks) Bookers Bakery Limited is taking their company public. Under this firm commitment offering, Bookers Bakery will receive $16.67 from the Underwriter

Problem #2 (4 marks) Bookers Bakery Limited is taking their company public. Under this firm commitment offering, Bookers Bakery will receive $16.67 from the Underwriter (DFG Capital Markets) for each of the 1,500,000 shares that will be issued. You purchased 1,000 shares at the initial offering price of $19.00 per share from your friend who is a broker at DFG. Additional legal fees of $500,000 and indirect costs of $125,000 have been incurred. What are the flotation costs as a percentage of the total funds raised

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