b) FooTech is a private company that is about to go public through a traditional firm commitment IPO process. The company is offering 2 million shares for sale in the IPO. Below is an extract from the cover page of the IPO prospectus showing relevant information about the IPO. IPO Price 15 30 million Underwriting Spread 1.05 2.1 million Proceeds to company 13.95 27.9 million Per share Total Footnote: The company has granted the underwriter an option for 30 days to purchase an additional 300,000 shares at the initial public offering price per share, less the underwriting discount, solely to cover over-allotments. REQUIRED: i. Explain who is responsible for selling the shares and how many shares will be marketed or offered for sale initially. (4 marks) ii. Explain how the underwriter will react if the share price falls to 12 in the immediate period following the IPO. (4 marks) 7 Please turn over Ill. Explain how the underwriter will react if the share price rises to 17 in the immediate period following the IPO. (4 marks)