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 profit to the underwriters?

A. $460,000

B. No

Explanation:

Given:

Number of share = 100,000

underwriter’s explicit fee = $60,000

Offer price = $40

New Price = $44

A.

The Total cost of Equity share =

B.

No. The brokers do not catch the portion of the costs relating to the price quoted.

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the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.