It says its 3 questions, but they are all related

1. A company is going public at $16 and will use the ticker XYZ. The underwriters will charge a 7 percent spread. The company is issuing 20 million shares, and insiders will continue to hold an additional 40 million shares that will not be part of the IPO. The company will also pay $1 million of audit fees, $2 million of legal fees, and $500,000 of printing fees. The stock closes the first day at \$19. Answer the following questions: a. At the end of the first day, what is the market capitalization of the company? b. What are the total costs of the offering? Include underpricing in this calculation. 2. What are the total costs of going public for XYZ from Problem 1 as a percentage of the total pre-cost equity value? In calculating the pre-cost equity value, ase the closing price of the stock at the end of the first day as the pre-cost equity value. 3. The company in Problem I grants a 15 percent overallotment option to the underwriter. The underwriter issuen ahares that are backed by the entire overallotment option but has not yet exercised the optisn. a. Esplain what will happen if the price of the atock increases to 522 . Describe the underwriter profits from the overallotment option in your explanation. b. Explain what will happen if the price of the stock decreases to 511.50 . Describe the underwriter profits from the overallotment option in your explanation