Question: Superman Enterprises has just completed an initial public offering. The firm sold 2,600,000 new shares at an offer price of $10.50 per share. The underwritering

Superman Enterprises has just completed an initial public offering. The firm

Superman Enterprises has just completed an initial public offering. The firm sold 2,600,000 new shares at an offer price of $10.50 per share. The underwritering spread was $0.67 a share. The firm incurred $175,000 in legal, administrative, and other costs. What was the cost to the firm of the underwriting spread? 1742000 :1,742,000 Click "Verify" to proceed to the next part of the question. Suppose that on the first day of trading, the price of Superman's stock is $14.80 per share. What is the cost to the firm from the underpricing?

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