b) A company makes an initial public offering of shares to raise $320 million, at an offer price of $4 per share. The issue is underwritten at $3.90. The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $800,000. The firm's share price closes at $4.50 on its first day of trade. What is the total cost of the IPO. (4 marks)