An Investment Banker Agrees to Underwrite an Issue of 5

question 77

Multiple Choice

An investment banker agrees to underwrite an issue of 5 million shares of stock for NetChoice, Inc. on a firm commitment basis. The investment banker pays $31.50 per share to NetChoice, Inc. for the 5 million shares of stock. It then sells those shares to the public for $30.00 per share. How much money does NetChoice, Inc. receive?

• A)$150,000,000.
• B)$157,500,000.
• C)$112,000,000.
• D)$125,000,000.
• E)$105,000,000.