An IPO was offered to the public at $18 a share with the issuing firm receiving $16.50 of that amount. The issuer incurred $750,000 in legal and administrative costs. At the end of the first trading day, the stock was priced at $22.40 a share. What was the total dollar cost, including both direct and indirect costs, of issuing the securities if 225,000 shares were offered?

Total dollar cost along with direct and indirect cost is $2,077,500.

Calculation notes:

Calculation of indirect cost = (actual stock price - issued price amount received) x no of shares

(22.40-16.50) x 225000

=$1327500

Given that legal and administrative cost which is direct cost as $750000.

Total dollar cost= Direct cost + Indirect cost

=750000+1327500

=$2077500

agriculture and oil. natural resources, industry.

answer; whoever is willing and able to pay the price;