What is the percentage flotation cost on the net proceeds

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Reference no: EM132072182

Zanders Inc. is issuing new shares in a rights offer to raise $10 million for a new project. The subscription price for each new share is $10. The company has outstanding common shares of two million and share price of $25. If the company’s investment dealer charges a 5% spread on the rights offer, what is the percentage flotation cost on the net proceeds? (Round your answer to two decimal places.)

Reference no: EM132072182

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