The Green Hills Co. has just gone public. Under a firm commitment agreement, Green Hills received $26.04
Question:
The Green Hills Co. has just gone public. Under a firm commitment agreement, Green Hills received $26.04 for each of the 7 million shares sold. The initial offering price was $28 per share, and the stock rose to $32.30 per share in the first few minutes of trading. Green Hills paid $1,850,000 in direct legal and other costs and $370,000 in indirect costs. What was the flotation cost as a percentage of funds raised?
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We need to calculate the net amount raised and the costs associated with the offer The net amount ra...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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