Plasti-tech Inc.has decided to go public and has sold 2 million of its shares to its underwriter for $20 per share.The underwriter then sold them to the public for $22 each.Plasti-tech also encountered $0.5 million in administrative fees.Soon after the issue,the stock price rose to $25.Find Plasti-tech Inc.'s total cost of this issue including any underpricing.
A) $4.5 million
B) $9.5 million
C) $10.5 million
D) $14.5 million
Correct Answer:
Verified
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