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ABC sold 1 0 0 , 0 0 0 shares in an initial public offering. The underwriter's explicit fees were $ 1 0 0 ,

ABC sold

100, 000

shares in an initial public offering. The underwriter's explicit fees were $

100, 000 .

The offering price for the shares was $

15,

but immediately upon issue, the share price jumped to $

18 .

What is the best estimate of the total cost to ABC of the equity issue?

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