Problem:
Suppose a biotech company in Boston, Massachusetts, completes an $90 million IPO priced to the public at $75 per share. The firm receives $72 per share and the out-of-pocket expenses are $470,500. The stock's closing price at the end of the first day is $84.
Required:
Question: What is the total cost to the firm of issuing the securities?
Note: Provide support for your underlying principle.