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ABC Ltd., a technology company, issues a $16 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per...

ABC Ltd., a technology company, issues a $16 million IPO providing proceeds to ABC of $3.6 per share, from an offer price to the public of $4 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $284,000. The company's share price increases 19 per cent on the first day. What is the total cost to the issuer of the IPO (in millions of dollars to the nearest three decimal places; don't use the $ sign eg 7.897)?

 

Answer: 4.924 but I got $3.667

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