In a Canadian IPO issue, the issuing company has incurred $8 million for the floatation costs and legal fees. The issue involves 45 million shares. As a firm commitment written deal, the underwriter agrees to buy the shares at $19 each and resells to the public at $20.50 per share. What will be the percentage of direct costs required in this deal?

	a.	10.60%
	b.	9.10%
	c.	8.40%
	d.	11.50%

Canadian Corporation incurred $4 million for the floatation costs and legal fees of its IPO. The issue involved 17 million shares. As a firm commitment written deal, the underwriter agreed to buy the shares at $50 each and resell them to the public at $54 per share. What will be the percentage of direct costs required in this deal?

	a.	15.01%
	b.	5.60%
	c.	13.33%
	d.	21.76%