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Wyatt Oil has 8 million shares outstanding and is about to issue 1 0 million new shares in an IPO. The IPO price has been
Wyatt Oil has million shares outstanding and is about to issue million new shares in an IPO. The IPO price has been set at $ per share, and the underwriting spread is The IPO is a big success with investors, and the share price rises to $ on the first day of trading. The total cost to the firms original investors due to the market imperfections from the IPO is closest to:
A $ million
B $ million
C $ million
D $ million
E$ million
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