Assume the issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an underwriter and the underwriter sells the shares at $43 each.By the end of the first day's trading,the issuing company's stock price had risen to $70.In percentage terms,how much market value is absorbed by the total cost (direct expenses plus underpricing cost)?

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The Answer of Assume the issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an underwriter and the underwriter sells the shares at $43 each.By the end of the first day's trading,the issuing company's stock price had risen to $70.In percentage terms,how much market value is absorbed by the total cost (direct expenses plus underpricing cost)?

Assume the Issuer Incurs $1 Million in Other Expenses to Sell