NARRBEGIN: Sea Grove Beach Corp

NARRBEGIN: Sea Grove Beach Corp.
Sea Grove Beach Corporation
Sea Grove Beach Corporation is executing an initial public offering with the following characteristics.The company will sell 12 million shares at an offer price of $20 per share,the underwriter will charge a 7 percent underwriting fee,and the shares are expected to sell for $27.50 per share by the end of the first day's trading.Assuming this IPO is executed as expected.
-Refer to Sea Grove Beach Corporation.What is the initial return earned by investors allocated shares in the IPO?

A) 20.27%
B) 27.27%
C) 30.50%
D) 37.50%