MaDonna's Has Just Completed an Initial Public Offering

question 80

Essay

MaDonna's has just completed an initial public offering.The firms sold 6 million shares at an offer price of $16 per share.The underwriting spread was $.50 per share.The price of the stock closed at $22 per share at the end of the first day of trading.The firm incurred $200,000 in legal, administrative, and other costs.What were flotation costs as a fraction of funds raised?

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Definitions:

Older Adulthood

Older adulthood is a life stage typically beginning around the age of 65, characterized by retirement, changes in health status, and adjustments to social roles.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them.

Argue

The act of presenting reasons for or against a thing, often involving verbal exchange with another person.

Kid

Informally, refers to a child or young person; can also denote a young goat.