Superman Enterprises has just completed an initial public offering. The firm sold 3,900,000 new shares at an offer price of $15.50 per share. The underwritering spread was $1.02 a share. The firm incurred $175,000 in legal, administrative, and other costs.

What was the cost to the firm of the underwriting spread? Correct: 3,978,000

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Suppose that on the first day of trading, the price of Superman's stock is $17.40 per share. What is the cost to the firm from the underpricing? Correct: 7,410,000

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Given that the cost of the underwriting spread is $3,978,000 and the cost of underpricing is $7,410,000, what are the total costs of the issue to the firm as a percentage of the funds raised (the total amount paid by investors)? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer. Correct: 19.130.02

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