Current Attempt in Progress\ Pau, Inc. issues a

$38.6

million IPO priced at

$12.50

per share, and the offering price to the public is

$19.30

per share. The firm's legal fees, SEC registration fees, and other administrative costs are

$270,000

. The firm's stock price increases 18 percent on the first day. What is the underpricing cost of issuing the securities to the firm?\

$7.57

million\

$6.948

million\

$20.60

million\

$13.60

million