What is the firm's total cost of issuing the securities?

Name: What is the firm's total cost of issuing the securities?
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Question

Quizplus · Accepted Answer

The total cost of issuing the securities is the sum of the underwriting spread ($1.25 per share x 20 million shares = $25 million), the SEC registration fee ($109.10 per million dollars = $2,182), and the printing and engraving costs ($60,000). Therefore, the total cost is $25 million + $2,182 + $60,000 = $25.242182 million, which is closest to option C ($25.25 million).

What Is the Firm's Total Cost of Issuing the Securities