Gulf Coast Manufacturing Company is executing an initial public offering with the following characteristics. The company will sell 10 million shares and the offer price is $75 per share. The underwriters are charging a 7 percent underwriting spread. The companys filing, auditin, legal, and exchange listing fees associated with the offering are estimated to be $1,000,000.

• 15%

• 16%

• 18%

• 13.7%

• 17%