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Superman Enterprises has just completed an initial public offering. The firm sold 1,050,000 new shares at an offer price of $15.50 per share. The underwritering

Superman Enterprises has just completed an initial public offering. The firm sold 1,050,000 new shares at an offer price of $15.50 per share. The underwritering spread was $0.53 a share. The firm incurred $475,000 in legal, administrative, and other costs. What was the cost to the firm of the underwriting spread?

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