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IPO Costs. Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer price of $8 per share. The...

IPO Costs. 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 $.50 a share. The price of the stock closed at $12 per share at the end of the first day of trading. The firm incurred $100,000 in legal, administrative, and other costs.
1. Were flotation costs for Moonscape higher or lower than is typical for IPOs of this size (see Figure 14-1)?
Please see attachment

FINANCIAL ANALYSIS 324
WEEK 3 ASSIGNMENT
Chapter 14, Problem 8, Page 382
IPO Costs. 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 $.50 a share. The price of the stock closed at
$12 per share at the end of the first day of trading. The firm incurred
$100,000 in legal, administrative, and other costs.
.
Were flotation costs for Moonscape higher or lower than is typical for
IPOs of this size (see Figure 14–1)?

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