What%age of direct expense is required to market stock if the issuer incurs $1 million in other expenses to sell 3 million shares at $34 each to an underwriter and the underwriter sells the shares at $40 each?

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The underwriting spread is $6 per share ($40 - $34), totaling $18 million for 3 million shares. The direct expense percentage is calculated as $1 million (other expenses) divided by $18 million (underwriting spread), which is approximately 7.19%.

What%age of Direct Expense Is Required to Market Stock If