Explore BrainMass

Explore BrainMass

    Moonscape Initial Public Offering and Floatation Costs

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com November 30, 2021, 12:17 am ad1c9bdddf
    https://brainmass.com/business/initial-public-offering/moonscape-initial-public-offering-flotation-costs-32678

    Attachments

    Solution Preview

    Flotation costs include both the underwriting spread and the costs incurred by the issuing company from the offering. It is expressed as a portion of gross proceeds

    Gross ...

    Solution Summary

    The solution discusses whether flotation costs for Moonscape were higher or lower than is typical for IPOs.

    $2.49

    ADVERTISEMENT