An Underwriter Issues a Firm Commitment to Sell 1 Million

question 92

Multiple Choice

An underwriter issues a firm commitment to sell 1 million shares at $20 each, including a $2 spread. How much does the issuing firm receive if only 500,000 shares are sold?

• A) $9 million
• B) $10 million
• C) $18 million
• D)$20 million

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