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Mechanics of Raising Equity Capital

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Chen Brothers, Inc., sold 4 million shares in its IPO, at a price of $18.50 per share. Management negotiated a fee (the underwriting spread) of 70% on this transaction. What was the dollar cost of the IPO fee?

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The mechanics of raising equity capital for Chen Brothers Inc is examined. The dollar cost of the IPO fee is determined.

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The dollar cost of the IPO fee is computed by multiplying the ...

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