B. Ocean Gas is a private firm with no debt and has 12 million shares outstanding, and it is about to issue 4 million new shares in an IPO. The IPO price has been set at $16 per share, and the underwriting spread is 8%. Assuming that the existing shareholders sell a half of their shares at the IPO, and the IPO is a big success so share price rises to $55 on the first day of trading. (i) How much is the total money raised from the IPO? (ii) How much is the existing shareholders receive through this IPO? (iii) Explain whether there is the underpricing situation in this IPO (iv) Assuming that the market value of the firm after the IPO is the fair market value, and that the firm could have issued shares directly to investors at their fair market value of firm assets in a perfect market with no underwriting spread and no underpricing, what would the share price have been in this case, if Ocean Gas and its existing shareholders can raise the same amount as in part (i)