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ABC Ltd issues a $18 million IPO providing proceeds to ABC of $5.4 per share,...

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Finance

ABC Ltd issues a $18 million IPO providing proceeds to ABC of $5.4 per share, from an offer price to the public of $6 per share. The company's legal fees, ASIC registration fees, and other administrative costs are $350,000. The company's share price increases 14 per cent on the first day. What is the underwriting cost? (in millions of dollars to the nearest three decimal places; dont use the $ sign eg 7.897)

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