The Huff Co

Multiple Choice

The Huff Co.has just gone public.Under a firm commitment agreement,Huff received $21.50 for each of the 6 million shares sold.The initial offering price was $23.65 per share,and the stock rose to $31.42 per share in the first few minutes of trading.Huff paid $1,260,000 in direct legal and other costs,and $390,000 in indirect costs.The flotation costs were what percentage of the funds raised?

A) 38.56 percent
B) 40.32 percent
C) 41.68 percent
D) 48.03 percent
E) 49.09 percent