Beta Company is going public at $20 and will use the ticker BCI. The underwriters will charge a 7% spread. The company is issuing 25 million shares and insiders will continue to hold an additional 50 million shares that will not be part of the IPO. The company will also pay $1.2 million of audit fees, $2.5 million of legal fees and $625,000 of printing fees. Bcl closes at $24 a share at the end of the first day. Assume that the underwriter is granted a 15% overallotment option. The underwriter issues shares backed by the entire overallotment option but has not yet exercised the option Based on the information above, please answer the following questions: a) Explain what will happen if the stock price increases to $30 a share. Describe the underwriter's profits in your answer. b) Explain what will happen if the stock price falls to $15 a share. Describe the underwriter's profits in your