Assume a company just sold 15,000, 000 shares in an IPO for $12 per share. If the underwriter took a 5% fee, and the company incurred $450,000 in legal and consulting costs:
a. What net proceeds did the company and underwriters receive?
b. How much money will be left on the table if at the end of the first day the stock closed at $15? at $11? Who benefits in each case?