Question 27 5 pts Circle was a spectacularly successful start-up that had received three rounds of financing The company was now planning to go public and enlisted Stanley Goldmorgan at ShoeHorn Bank to underwrite its IPO. He asked for the usual 5% fee from the proceeds of the IPO and negotiated a Greenshoe allocation of 15%. It was agreed that the company sell 10M new shares to IPO investors. Prior to the IPO, Stanley Goldmorgan had set the mid-range price per share of $18, suggesting that this was his best guess of what the market would yield. However, the day before the IPO he surprised the founders of Circle by reporting some anxiety in the market and recommend dropping the price per share to $12. Circle reluctantly agreed but was surprised to find the market price at the end of the first day of trading hovering around $20 per share. Stanley Goldmorgan was beaming, suggesting that the IPO has been an enormous success, with prices shooting up 67%. How much underwriting fees did Circle have to pay to the ShoeHorn bank? O 6M O 8.4M O 7.2M Next Previous Not saved Subm