Problem:
Myriad Biotech plans a $114 million IPO in which the offering price to the public will be $51 per share. The company will receive $43 per share. The firms legal fees, SEC registration fees, and other out-of-pocket costs will t otal $525,000.
Required:
Question: If the stock price increases 14 percent on the first day of trading, what will be the total cost of issuing the securities?
Note: Please describe comprehensively and provide step by step solution.