Raybac is about to go public. Its present stockholders own 500,000 shares. The new public issue will represent 700,000 shares. The shares will be priced at $25 to the public with a 5% spread. The out-of pocket costs will be $450,000. What are the net proceeds to the firm?
A. $18,750,000
B. $17,200,000
C. $18,250,000
D. $16,175,000