1.

a)ABC Ltd issues a $32 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $356,000. The company's share price increases 8 per cent on the first day. What is the underpricing cost to the company of issuing the securities?

b)A company issues a $15 million IPO with an offer price of $3 per share, underwritten at $2.79 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $395,000. The company's share price increases by $0.6 on the first day. What is the company's total cost of issuing the securities (in millions of dollars to three decimal places; don't use $ sign eg $4.5766 million is 4.577)? (Remember to round the number of shares issued to a whole number).

C)When ABC Company went public in September 2008, the offer price was $4.05 per share and the closing price at the end of the first day was $6.55. The company issued 4 million shares. What was the loss to the company due to under-pricing? (in millions of dollars to the nearest two decimal places; don't use $ sign eg $4.5766 million is 4.58)