Problem 15.07 – Calculating Flotation Costs
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Find the flotation costs with the given information.
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Find the flotation costs with the given information.
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What is the net amount raised, total direct costs, total indirect costs, total costs, and flotation cost percentage for a company after going public and receiving a certain amount for each of a number of shares sold, with an initial offering price and stock rising minutes after trading, and paying legal and other direct costs and indirect costs?
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Given the information on the public offering… calculate the company’s flotation costs as a fraction of funds raised.
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Given the information after the company went public… find the underwriting spread percentage, how much the company raised, and the dollar cost of underpricing.
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Determine the minimum number of shares that the company must sell to raise the given amount.
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Calculate the following for Associated Breweries: number of new shares, amount of new investment, the total value after, the total number of shares after the issue, and share price after the issue.
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Determine the cost of the price drop to existing shareholders for Fax Facts.
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