Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.14 per share. On the first day of trading, the stock closed at $19.15 per share. If Margoles Publishing paid an underwriting spread of 7.3% for its IPO and sold 6 million shares, what was the total cost (exclusive of underpricing) to the company of going public? The total cost of going public was $ million. (Round to one decimal place.)
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- A firm conducting an IPO of common staock sold 1 million new shares in the offering at an offer price of $10 dollars per share. After the offering, the firm had 5 million shares outstanding, and the price of those shares in the secondary market was $12. The Firms IPO was underpriced by?Margoles Publishing recently completed its IPO. The stock was offered at a price of $14.63 per share. On the first day of trading, the stock closed at $19.37 per share. If Margoles Publishing paid an underwriting spread of 6.6% for its IPO and sold 11 million shares, what was the total cost (exclusive of underpricing) to it of going public? The total cost of going public was $ million. (Round to one decimal place.)FBN Inc. has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $70,000. The offering price for the shares was $50, but immediately upon issue, the share price jumped to $53.a. What is your best guess as to the total cost to FBN of the equity issue?b. Is the entire cost of the underwriting a source of profit to the underwriters?
- Felton Publishing recently completed its IPO. The stock was offered at $14.07 per share. On the first day of trading, the stock closed at $19.97 per share. a. What was the initial return on Felton? b. Who benefited from this underpricing? Who lost, and why?A firm goes public. The firm receives $36.50 for each of the 7.25 million shares sold. The initial offering price was $38.75 per share, and the stock rose to $42.65 per share is the first few minutes of trading. The firm paid $2,285,000 in direct legal and other costs and $988,000 in indirect cost. What was the total for underpricing of this offer?Moonscape has just completed an initial public offering. The firm sold 6 million shares at an offer price of $6 per share. The underwriting spread was $0.40 a share. The price of the stock closed at $9.00 per share at the end of the first day of trading. The firm incurred $100,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- Margoles Publishing recently completed its IPO. The stock was offered at $14.00 per share. On the first day of trading, the stock closed at $19.00 per share. a. What was the initial return on Margoles? b. Who benefited from this underpricing? Who lost, and why? a. What was the initial return on Margoles? The initial return was 1%. (Round to one decimal place.) b. Who benefited from this underpricing? (Select the best choice below.) OA. Owners of other shares outstanding (not part of the IPO) and underwriters. O B. The company and underwriters. O C. Investors who bought shares at the IPO price of $14.00/share and investment banks (indirectly from future business) O D. The company and owners of other shares outstanding (not part of the IPO). Who lost? (Select the best choice below.) 0 A. Owners of other shares outstanding (part of the IPO) O B. Owners of other shares outstanding (not part of the IPO) O C. Both of the above. 0 D. Investors who bought shares at the IPO price of…Moonscape has just completed an initial public offering. The firm sold 4 million shares at an offer price of $10 per share. The underwriting spread was $0.60 a share. The price of the stock closed at $14.00 per share at the end of the first day of trading. The firm incurred $400,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Flotation cost as percent of funds raised %Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $10 per share. The underwriting spread was $0.70 a share. The price of the stock closed at $13.00 per share at the end of the first day of trading. The firm incurred $500,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete but not entirely correct. 73.00 % Flotation cost as percent of funds raised
- Publishing recently completed its IPO. The stock was offered at $14.76 per share. On the first day of trading, the stock closed at $18.33 per share. a. What was the initial return on Felton? b. Who benefited from this underpricing? Who lost, and why?Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $8 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $12.00 per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Costs as percent of funds raised %Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $12 per share. The underwriting spread was $0.30 a share. The price of the stock closed at $18.00 per share at the end of the first day of trading. The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost as percent of funds raised?