ACME Corporation has decided to go public. It is going to issue 40 million shares. The underwriters acquired the shares for $27.50 per share from ACME and sold them to the public at an offering price of $31.50 per share. By the end of the trading day the stocks had risen to $36.50 per share. Acme also incurred $2.5 million dollars in other legal and administrative expenses, in issuing the IPO. (a) What were the underwriting expenses of the ACME IPO? (2 marks) (b) What was the cost of underpricing? (2 marks) (c) What were the total Flotation Costs of the IPO. (2 marks) (d) What percentage (%) of the market value of the shares did the flotation costs represent? (2 marks)