Answer:
0.81%
Explanation:
Flotation costs are the expenses incurred by a company when it issues new securities. The costs include underwriting, legal, registration, and audit fees.
For Sugar land co. flotation cost will be
Legal fee: $912,000 + direct cost $264,000= $ 1,176,000.00
net amount raised equals= $35.10 x 4,170,000=$ 146,367,000.00- flotation cost
=$146,367,000.00- $ 1,176,000.00= $145,191,000.00
As a percentage of fund raised = 1176,000.00/145,191,000x100
=0.0081 x100
=0.81%