1. West Coast Manufacturing Company (WCNC) isexecuting an initial public offerin

1. West Coast Manufacturing Company (WCNC) isexecuting an initial public offering with the followingcharacteristics. The company will sell 10million shares at an offer price of $25 per share the underwriterwill charge a 7% underwriting fee and the shares are expected tosell for $32 per share by the end of the first daystrading. Assume that this IPO is executed asanticipated.