Goldman-led Twitter underwriters share $59.2 million in IPO fees. That's 3.25% of the $1.82 billion that Twitter raised in its IPO.
Twitter's 70 million IPO shares rose to $44.90 per share at the close in New York from the initial public offering price of $26.
a. What is your best guess as to the total cost to Twitter of the equity issue?
b. Is the entire cost of the underwriting a source of profit to the underwriters?
Please answer question 2. It has 2 parts. Please show work if necessary or provide explanation if needed.