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

Solution Summary

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

$2.49