House Mountain Breweries (HMB) is planning an IPO. Its underwriters have said that the stock will sell at $25 per share. The direct costs (legal, printing, etc.) will be $750,00. The underwriters will charge a 7 percent spread.

a.) How many shares must HMB sell to net $30 million?

b.) If the stock price closes the first day at $27, how much has HMB left on the table?

c) What are HMBs total costs (direct, indirect, and underwriting) for the IPO?