Aaron's Sailboats Has Decided to Take the Company Public by Offering

Aaron's Sailboats has decided to take the company public by offering a total of 120,000 shares of common stock to the public.The firm has hired an underwriter who arranges a full commitment underwriting and suggests an initial selling price of $25 a share with a 7 percent spread.As it turns out,the underwriters only sell 97,400 shares.How much cash will Aaron's Sailboats receive from its first public offering?

A) $2,727,200
B) $3,074,400
C) $2,790,000
D) $3,360,000
E) $3,645,600