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XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at...

XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $68 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $80. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?

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Expert Solution

direct costs separately not given. so underwriting costs is only direct cost. Indirect cost is price appreciation

jeff jeffy answered 2 weeks ago
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