Batman Enterprises has just completed an initial public offering. The firm sold 1,100,000 new shares (the primary offering). In addition, existing shareholders sold 125,000 shares (the secondary issue). The new shares were offered to the public at $15.00 per share and underwriters received a spread of $1.37 a share. The legal, administrative, and other costs were $100,000 and were split proportionately between the company and the selling stockholders. The company receives $14,993,000 before paying direct costs.

Suppose that on the first day of trading, the price of Batman's stock is $18.30 per share. What is the cost to the firm from the underpricing?