Problem:
Stump, Inc., a technology firm in Prairie View, Texas, issues a $66 million IPO priced at $17 per share, and the offering price to the public is $22 per share. The firm's legal fees, SEC registration fees, and other administrative costs are $350,000. The firm's stock price increases 15 percent on the first day.
Required:
Question: What is the firm's total cost of issuing the securities?
a.) $24.9 million
b.) $25.25 million
c.) $15.35 million
d.) None of these
Note: Please explain comprehensively and give step by step solution.