An IPO Was Priced to Sell at $23 a Share

question 71

Multiple Choice

An IPO was priced to sell at $23 a share and closed at $22 a share at the end of the first day of trading. The underwriting spread was 7% of the offer price and the legal, accounting and administrative costs were $1.6 million. What was the total percentage cost of the issue as a percentage of the market value at the end of the first day if 250,000 shares were offered?

• A) 38.87%
• B) 31.86%
• C) 42.08%
• D)36.41%

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Definitions:

Number Of Failures

A metric used to quantify the instances where a product, component, or system ceases to function as intended.

Maintenance History

Records detailing past maintenance actions performed on equipment or facilities to ensure their efficient and safe operation.

Preventive Maintenance

Scheduled maintenance activities performed on equipment to prevent unexpected failures and ensure it operates efficiently.

Breakdown Maintenance

Maintenance work performed after equipment has failed, aimed at restoring it to operational condition.