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Tiger Brews is a Columbia, MO based brewer of breakfast beer. They went public five years ago with an issuance of 5 million shares which,

Tiger Brews is a Columbia, MO based brewer of breakfast beer. They went public five years ago with an issuance of 5 million shares which, as of yesterday, were trading at $51.78 per share. They are looking to raise capital to start up a chain of brewpubs in St. Louis by issuing an additional 1.4 million shares tomorrow in a Seasoned Equity Offering (SEO). Management expects the current publicly traded shares to drop 2.5% at tomorrow's offering and remain at that price after the offering (i.e., the closing price on the offer date will be 2.5% lower than what they were trading at yesterday). However their investment bank, hoping for a fully subscribed offering, has suggested an offer price of $48.58 for those investors allocated shares from the SEO (i.e. there will likely be underpricing). The investment banker intends to charge a 7% spread for a firm commitment underwriting of the issue and $250,000 in legal and registration fees. The management team also estimates that at least one month's worth of the CFO's available man-hours were dedicated to preparing the offering and the CFO currently earns $120,000 per year. What is the total dollar amount of expenses (direct and indirect) associated with Tiger Brew's SEO in millions?

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