Sea Grove Beach Corporation Is Executing an Initial Public Offering

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.
-What is the total cost (underwriting fee and underpricing) of this issue to Sea Grove Beach Corporation?

A) $6.30 million
B) $16.80 million
C) $106.80 million
D) $125.00 million