Question: ANSWER B PLEASE Superman Enterprises has just completed an initial public offering. The firm sold 4,950,000 new shares at an offer price of $15.00 per

ANSWER B PLEASE

Superman Enterprises has just completed an initial public offering. The firm sold 4,950,000 new shares at an offer price of $15.00 per share. The underwritering spread was $1.11 a share. The firm incurred $150,000 in legal, administrative, and other costs. What was the cost to the firm of the underwriting spread? $5,494,500.00:

Correct response: 5,494,500

B. Suppose that on the first day of trading, the price of Superman's stock is $19.90 per share. What is the cost to the firm from the underpricing? Number

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