11. DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44.,a. What is your best guess as to the total cost to DRK of the equity issue?,b. Is the entire cost of the underwriting a source of pro?t to the underwriters?,
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