The Collins Co. has just gone public. Under a firm commitment agreement, Collins

Question

The Collins Co. has just gone public. Under a firm commitment agreement, Collins received $32.40 for each of the 4.14 million shares sold. The initial offering price was $34.80 per share, and the stock rose to $41.80 per share in the first few minutes of trading. Collins paid $909,000 in legal and other direct costs and $258,000 in indirect costs. (Enter your answer as directed, but do not round intermediate calculations.)

What is the net amount raised? (Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)

What are the total direct costs? (Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)

What are the total indirect costs? (Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)

What are the total costs?(Enter the whole number for your answer, not millions (e.g., 1,234,567). Round your answer to the nearest whole number (e.g., 1,234,567).)

What was the flotation cost as a percentage of funds raised? (Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

The Collins Co. has just gone public. Under a firm commitment agreement, Collins received $32.40 for each of the 4.14 million shares sold. The initial offering price was $34.80 per share, and the stock rose to $41.80 per share in the first few minutes of trading. Collins paid $909,000 in legal and other direct costs and $258,000 in indirect costs. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

Net amount raised=32.40 *4140000-(909000+258000)

Net amount =132969000

Total floatation cost as % of funds rasied=1167000/134136000*100=.87%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.