CAN YOU PLEASE ANSWER THIS QUESTION

A company is going public at $19 and will use the ticker XYZ. The undenwriters will charge a 7 percent spread. The company is issuing 16 million shares, and insiders will continue to hold an additional 32 million shares that will not be part of the 1P0. The company will also pay $1.5 million of audit fees, $3.5 million of legai fees, and $900,000 of printing fees. The stock doses the first day at $23. Now the company grants a 15 percent overallotment option to the underwriter. The underwriter issues shares that are backed by the entire overallotment option but has not yet exercised the option. a. Explain what will happen if the price of the stock increases to $25.00. Describe the underwriter profits from the overallotment option in your explanstion. Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Do not round Intermediate calculations. Roand your answer to two decimal places, If the stock price increases to $25.00 in the secondary market, the underwriter exercise is option and the underwriter profit will be 1 . b. Explain what wili happen if the price of the stock decreases to $15.00. Describe the underwriter profits from the overaliotment option in your explanation. Enter your answer in milions. For examole, an answer of 41.23 mition should be entered as 1.23, not 1,230,000. Do not round intermediate calculations. Hound your answer to two decimal places. If the stock price decroases to $15.00 in the secondary market, the underwriter exercise its option and the underwiter profit will be 5 milition