1. ABC Ltd issues a $20 million IPO providing proceeds to ABC of $4.5 per share, from an offer price to the public of $5 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $406,000. The company's share price increases 14 per cent on the first day. What is the underwriting cost? (in millions of dollars to the nearest three decimal places; dont use the $ sign eg 7.897)

2. ABC Airways is introducing a new fleet of planes and needs to raise $9.576 million (net of underwriting cost) to fund an expansion. If the offer price is $3 and the underwriters require a 5 per cent spread on the transaction, how many shares does the company need to issue (in millions to three decimal places)? (Hint: required amount/(1-spread) = issue amount)

3. ABC Ltd, a high-technology company, issues a $21 million IPO with an offer price of $2 per share, underwritten at $1.88 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $279,000. The company's share price increases by $0.3 on the first day. What is the company's total cost of issuing the securities (in millions of dollars to three decimal places; dont use $ sign eg $4.5766 million is 4.577)? (Remember to round the number of shares issued to a whole number)