Total Cost of the Equity Issue Assignment | Homework For You
June 2nd, 2020
NewCorp sold 180,000 shares in an initial public offering. The underwriter’s explicit fees were $66,000. The offering price for the shares was $36, but immediately upon issue, the share price jumped to $49. What is the best estimate of the total cost to Barnegat Light of the equity issue? (Hint: This was similar to a homework question)
A. | $2,406,000 | |
B. | $66,000 | |
C. | $2,274,000 | |
D. | $2,340,000 |
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