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Aaron's Sailboats has decided to take the company public by offering a total of 120,000 shares of common stock to the public. The firm has

Aaron's Sailboats has decided to take the company public by offering a total of 120,000 shares of common stock to the public. The firm has hired an underwriter who arranges a full commitment underwriting and suggests an initial selling price of $28 a share with an 8.5 percent spread. As it turns out, the underwriters only sell 97,400 shares. How much cash will Aaron's Sailboats receive from its first public offering?

a) $2,727,200

b) $2,495,388

c) $3,074,400

d) $3,360,000

e) $3,645,600

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