ABC Ltd., a technology company, issues a $40 million IPO providing proceeds to ABC of $4.5 per share, from an offer pric

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answerhappygod
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ABC Ltd., a technology company, issues a $40 million IPO providing proceeds to ABC of $4.5 per share, from an offer pric

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ABC Ltd., a technology company, issues a $40 million IPO
providing proceeds to ABC of $4.5 per share, from an offer price to
the public of $5 per share. The company's legal fees, ASIC
registration fees, and other administrative costs are $369,000. The
company's share price increases 7 per cent on the first day. What
is the total cost to the issuer of the IPO (in millions of dollars
to the nearest three decimal places; don’t use the $ sign eg
7.897)?
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