Batman Enterprises has just completed an initial public offering. The firm sold 4,400,000 new shares at an offerprice of$16.00 per share.Theunderwritering spreadwas$1.18 a share. The firm incurred $200,000 in legal, administrative, and other costs.

a) What was the cost to the firm of the underwriting spread?

b) Suppose that on the first day of trading, the price of Batman's stock is $20.60 per share. What is the cost to the firm from the underpricing?

c) Given that the cost of the underwriting spread is $5,192,000 and the cost of underpricing is $20,240,000, what are the total costs of the issue to the firm as a percentage of the funds raised? Enter your answer as a percentage rounded to two decimal places.