Lee started a firm which he recently took public with a new stock issue of 1 million shares. As the firms founder he personally owns 1.2 million shares, all of which he owned prior to the new stock issue. The offer price of the IPO was $16 a share. The price paid to the firm was $14.20 a share and the closing price on the IPO date was $19 a share. How much of a loss did Lee personally experience due to the IPOs underpricing?

$1.2 million

$2.4 million

$0

$3.6 million

$5.76 million