The Rabe Company has just gone public under a firm commitment agreement and sold (i.e. floated) 4.1 million shares to the public. Rabe stock went public (i.e. begin to trade over the exchange) at $34.40. The first day closing price of Rabe stock was $41 per share. Rabe paid $905,000 in legal and other direct costs, $250,000 in indirect costs, and an underwriters fee of $2.40 per share.

Required:

i. Compute the net amount raised by the Boeing Company as a result of the IPO.

ii. Compute the Underpricing cost or money left on the table.