What is the total cost of the ipo

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Problem a) Discuss two advantages and two disadvantages of going public for firms.

Problem b) A company makes an initial public offering of shares to raise $320 million, at an offer price of $4 per share. The issue is underwritten at $3.90. The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $800,000. The firm's share price closes at $4.50 on its first day of trade. What is the total cost of the IPO.

Reference no: EM132912574

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