1. A firm desires to sell stock to the public. The underwriter charges $0.4 million in fees and offers to buy six million shares from the firm at a price of $30 per share. In addition, registration and audit fees total $120,000, and marketing and miscellaneous fees add up to another $65,000. The underwriter expects to earn gross proceeds per share of $36. a) What is the issuing firm's out-of-pocket dollar transaction cost to issue the stock? (10 marks) b) Immediately after the stock was issued, the stock price rose to $38. What is the issuing firm's opportunity cost? (10 marks) c) What is the total issuance cost, including opportunity costs, as a percentage of the total funds available to the issuing firm? (10 marks)