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What was the floatation cost as a fraction of funds raised

Question:

Lewis Morris Crew spends $350,000 in bureaucratic expenses in their IPO. The underwriter sells 3 million shares at an offer price of $9.63, charging Lewis Morris Crew 50 cents per share in spread. The stock closes at $12. What was the floatation cost as a fraction of funds raised?

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Finance Basics: What was the floatation cost as a fraction of funds raised

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