Nielson Motors sold 10 million shares of stock in an SEO. The market price of Nielson's stock at the time was $37.50. Of the 10 million shares sold, 4 million shares were primary shares sold by the company, and the remaining 6 million shares were being sold by the venture capital investors. The costs of the issue, comprising of administrative fees of $50,000, and an underwriter spread of 4% of the gross proceeds, are shared proportionately between the primary and secondary shares.

a. Calculate the net funds raised by i) Nielson Motors and ii) the venture capitalist

b. Calculate the amount of money the underwriter will earn on this transaction

c. Briefly explain the difference in issuance costs between a SEO and an IPO