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 $28 a share with an 8.5 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) $2,495,388
C) $3,074,400
D) $3,360,000
E) $3,645,600