Glasses, Etc. is offering 100,000 shares of common stock to the public in an initial public offering (IPO). The underwriters agree to pay $18 a share and to provide their services in a best efforts underwriting. The offer price is set at $19.50. The underwriters sell a total of 91,700 shares to the general public. How much cash did Glasses, Etc. receive from its IPO?

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In a best efforts underwriting, the company receives the amount based on the actual number of shares sold by the underwriters, not the offer price. Glasses, Etc. sold 91,700 shares at $18 each (the price the underwriters agreed to pay), which equals $1,650,600 (91,700 shares * $18/share).