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Use the Table for the Question(s)below

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Use the table for the question(s) below.
David founds a company and goes through the investment rounds shown below:
Use the table for the question(s) below. David founds a company and goes through the investment rounds shown below:    He decides to take the company public through an IPO,issuing 2 million new shares.Assuming that he successfully completes the IPO,the net income for the next year is estimated to be $8 million.His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses,which is 15.0. -An IPO is offered at $12.50 per share for 4 million shares.The IPO underwriters had a spread of 6.5%.What was the total fee paid to the underwriters? A) $3.25 million B) $4 million C) $260,000 D) $2.25 million E) $12.5 million He decides to take the company public through an IPO,issuing 2 million new shares.Assuming that he successfully completes the IPO,the net income for the next year is estimated to be $8 million.His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses,which is 15.0.
-An IPO is offered at $12.50 per share for 4 million shares.The IPO underwriters had a spread of 6.5%.What was the total fee paid to the underwriters?

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Definitions:

Free Trade

Global trade allowed to proceed without any tariffs, quotas, or limitations, following its natural flow.

Wagons

A four-wheeled vehicle typically used for transporting goods or passengers, historically drawn by animals.

Consumers

Individuals or entities that purchase goods or services for personal use.

Tariff

A governmental policy tool used to control the flow of international trade through taxes on imports and exports.

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