A) Superman Enterprises has just completed an initial public offering. The firm sold 2,500,000 new shares (the primary offering). In addition, existing shareholders sold 350,000 shares (the secondary issue). The new shares were offered to the public at $12.50 per share and underwriters received a spread of $0.91 a share. The legal, administrative, and other costs were $300,000 and were split proportionately between the company and the selling stockholders. The company received $28975000 before paying its proportion of the direct costs. Suppose that on the first day of trading, the price of Superman's stock is $14.80 per share. What is the cost to the firm from the underpricing?

B) The Clifford Corporation has announced a rights offer to raise $84 million. The stock currently sells for $27 per share and there are 35 million shares outstanding. If the subscription price is set at $12 per share, 7,000,000 new shares will be sold, it will take 5 rights to buy one share. What is the ex-rights price (the share price after the offer is complete)? Round your answer to 2 decimal places.