How Much Will a Firm Receive in Net Funding from a Firm

question 3

Multiple Choice

How much will a firm receive in net funding from a firm commitment underwriting of 250,000 shares priced to the public at $40 if a 10% underwriting spread has been added to the price paid by the underwriter? Additionally,the firm pays $600,000 in legal fees.

• A) $8,400,000
• B) $8,460,025
• C) $8,490,909
• D) $8,545,455

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