Suppose a biotech company in Boston, Massachusetts, completes an $85 million IPO priced to the public at

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Suppose a biotech company in Boston, Massachusetts, completes an $85 million IPO priced to the public at $75 per share. The firm receives $72 per share and the out-of-pocket expenses are $340,000. The stock’s closing price at the end of the first day is $84. What is the total cost to the firm of issuing the securities?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

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

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