Home / Answered Questions / Other / xyz-used-an-investment-bank-to-do-ipo-in-ipo-xyz-sold-1-million-shares-at-66-52-each-the-investment--aw536

(Solved): XYZ Used An Investment Bank To Do IPO. In IPO, XYZ Sold 1 Million Shares At $66.52 Each. The Investm...

XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $66.52 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $72.63. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?

We have an Answer from Expert View Expert Answer

Expert Answer

Solution: Total Cost of IPO is $10,766,400 (which is the sum of Direct & indirect cost of IPO) Working Notes: Total Cost of IPO = IPO Di

We have an Answer from Expert
Buy This Answer $6

-- OR --

Subscribe To View Unlimited Answers
Subscribe $20 / Month