Secruity brokers inc specializes in underwriting new issues, Ask an Expert

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Secruity Brokers INC. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows:

Price to public $5 per share
Number of shares 3 million
Proceeds to Beedles $14,000,000

The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the the issue were $300,000. What profit or loss would security brokers incur if the were sold to the public at the foloowing average price?

a. $5 per share
b. $6 per share
c. $4 per share

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9880810

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