Canadian Corporation Incurred $4 Million for the Floatation Costs and Legal

Multiple Choice

Canadian Corporation incurred $4 million for the floatation costs and legal fees of its IPO.The issue involved 17 million shares.As a firm commitment written deal,the underwriter agreed to buy the shares at $50 each and resell them to the public at $54 per share.What will be the percentage of direct costs required in this deal?

A) 5.60%
B) 15.01%
C) 21.76%
D) 13.33%