An Investment Banker Agrees to Underwrite an Issue of 10

question 7

Multiple Choice

An investment banker agrees to underwrite an issue of 10 million shares of stock for Rochester Industries on a best-efforts basis. The investment banker is able to sell 8 million shares for $10.50 per share, and it charges Rochester Industries $0.225 per share sold.
-If the investment bank sells 8 million shares for $9.75 per share,how much money does Rochester Industries receive?

• A)$76,200,000.
• B)$84,000,000.
• C)$105,000,000.
• D)$82,200,000.

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