Nelson Paints Recently Went Public by Offering 65,000 Shares of Common

Multiple Choice

Nelson Paints recently went public by offering 65,000 shares of common stock to the public.The underwriters provided their services in a best efforts underwriting.The offering price was set at $16 a share and the gross spread was $2.After completing their sales efforts,the underwriters determined that they sold a total of 57,500 shares.How much cash did Nelson Paints receive from its IPO?

A) $805,000
B) $910,000
C) $920,000
D) $1,035,000
E) $1,040,000