Problemstump inc a technology firm in prairie view texas, Ask an Expert

Accounting

Problem:

Stump, Inc., a technology firm in Prairie View, Texas, issues a $66 million IPO priced at $17 per share, and the offering price to the public is $22 per share. The firm's legal fees, SEC registration fees, and other administrative costs are $350,000. The firm's stock price increases 15 percent on the first day.

Required:

Question: What is the firm's total cost of issuing the securities?

a.) $24.9 million

b.) $25.25 million

c.) $15.35 million

d.) None of these

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170003

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