DRK, Inc., has just sold 120,000 shares in an initial public offering. The underwriters explicit fees were $72,000. The offering price for the shares was $58, but immediately upon issue, the share price jumped to $65.00.

a.	What is the total cost to DRK of the equity issue?

Total cost

$

b.

Is the entire cost of the underwriting a source of profit to the underwriters?

	Yes
	No