Suppose that a biotech firm in Pittsburgh raised $120 million in an I.P.O. The firm received $23 per share, and the stock sold to the public for $25 per share. The firms legal fees, S.E.C. registration fees, and other out-of-pocket costs were $270,000. The firms stock price increased 17.5% on the first day. What was the total cost to the firm of issuing the securities?