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Pau, Inc Issues a $38

Question 56

Multiple Choice

Pau, Inc. issues a $38.6 million IPO priced at $12.50 per share, and the offering price to the public is $19.30 per share. The firm's legal fees, SEC registration fees, and other administrative costs are $270,000. The firm's stock price increases 18 percent on the first day. What is the total cost of issuing the securities to the firm?


A) $13,606,000
B) $20,818,000
C) $20,610,000
D) None of the above

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