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MaDonna's Has Just Completed an Initial Public Offering

question 80

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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?


Definitions:

Possessive

Demonstrating ownership or control over someone or something, often excessively so.

Sexual Masochism

The derivation of pleasure, especially sexual gratification, from one's own pain or humiliation.

Anorgasmia

A type of sexual dysfunction where an individual consistently struggles to achieve orgasm despite adequate sexual stimulation.

Asexuality

Lack of sexual attraction to another person.

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