5. IPO stock valuation Suppose Blume Corp. is going public and, based on the bookbuilding process, decides it will be issuing 500,000 shares of common stock to raise capital to fund the company's proposed expansion. Suppose a Dutch auction (an auction in which the auctioneer begins with a high asking price and lowers it until some bidder accepts the price) is used to allocate shares in the Blume Corp. IPO. The following table shows the number of shares requested by potential bidders. Bids Bidder 1 Bidder 2 Bidder 3 Bidder 4 Bidder 5 Bidder 6 Number of Shares Requested Price per Share 50,000 $63 100,000 $59 150,000 $50 200,000 $45 250,000 $41 300,000 $35 To sell the 500,000 shares, Blume Corp.'s IPO minimum offer price should be s The total amount of funding raised will be s Given the typical 7 percent transaction cost due to the issuing firm, the IPO would result in a transaction cost of $