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The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares sold. The initial offering price was $17.50 per share, and the stock rose to $19.40 per share in the first few minutes of trading. Raven paid $860,000 in direct legal and other costs and $330,000 in indirect costs.

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Question: What was the flotation cost as a percentage of funds raised?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166501

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