You are negotiating with your underwriters in a firm commitment offering of 11 million primary shares. You have two options: set the IPO price at $25.00 per share with a spread of 8%, or set the price at $24.40 per share with a spread of 6%. Which option raises more money for your firm?

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Part 1 The net price to the firm of the first option is $enter your response here. (Round to the nearest cent.)

Part 2 The net price to the firm of the second option is $enter your response here. (Round to the nearest cent.)

Part 3 The first second option raises more money for your firm.(Select from the drop-down menu.)