Kizspy | Question: 19
(Choose 1 answer)
Stump, Inc. 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. What is the underpricing on this issue?
A. $9,900,000
B. $24,900,000
C. $15,000,000
D. $9,000,000
