In a Canadian IPO Issue,the Issuing Company Has Incurred $2

Multiple Choice

In a Canadian IPO issue,the issuing company has incurred $2 million for the floatation costs and legal fees.The issue involves 7.5 million shares.As a firm commitment written deal,the underwriter agrees to buy the shares at $2.5 each and resells to the public at $4.50 per share.What will be the percentage of direct costs required in this deal?

A) 11.50%
B) 10.01%
C) 11.76%
D) 13.33%