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Sheridan Biotech management plans a $120 million IPO in which the offering price to the public will be $60 per share. The company will receive

Sheridan Biotech management plans a $120 million IPO in which the offering price to the public will be $60 per share. The company will receive $47.50 per share. The firms legal fees, SEC registration fees, and other out-of-pocket costs will total $600,000. If the stock price increases 14 percent on the first day of trading, what will be the total cost of issuing the securities?

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