Problemthe rouge co has just gone public under a firm, Ask an Expert

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The Rouge Co. has just gone public. Under a firm commitment agreement, Rouge received $19.00 for each of the 25 million shares sold. The initial offering price was $21.70 per share, and the stock rose to $22.70 per share in the first few minutes of trading. Rouge paid $880,000 in direct legal and other costs and $340,000 in indirect costs.

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

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166818

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