What was the percentage flotation cost on the net proceeds

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The Running Man Gym Equipment Inc., held a rights offering on January 2, 2011. Each right was valued at $0.50, while the cum-right share price was $3.00. Two rights were required to buy each new share. Before the rights offering, the firm had 10 million shares outstanding. If the company only received 90% of the total proceeds from the rights offering, what was the percentage flotation cost on the net proceeds?

Reference no: EM131295589

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