A company is going public at 16$ and will use the ticker xyz. The underwriters will charge a 7 percent spread. The company is issuing 20 million shares, and insiders will continue to hold an additional 40 million shares that will not be part of the IPO. The company will also pay $1 million of audit fees, $2 million of legal fees, and $500,000 of printing fees. The stock closes the first day at $19. Answer the following questions: a. At the end of the first day, what is the market capitalization of the company? b. What are the total costs of the offering? Include underpricing in this calculation.