An Investment Banker Agrees to Underwrite an Issue of 5

question 106

Multiple Choice

An investment banker agrees to underwrite an issue of 5 million shares of stock for NetChoice,Inc.on a best-efforts basis.The investment banker is able to sell 4.5 million shares for $31.00 per share and it charges NetChoice,Inc.$0.375 per share sold.
-What is the profit to the investment banker if all 5 million shares were sold for $35 per share?

• A)Profit of $1,275,000.
• B)Loss of $1,875,000.
• C)Profit of $1,875,000.
• D)Loss of $3,125,000.

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Definitions:

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A social system in which the government takes responsibility for the well-being of its citizens by providing services such as healthcare, education, and financial assistance.

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Consensus is the general agreement reached by a group as a whole, often used in the context of decision-making processes where unity and collective support are sought.