Reliant Underwriters Has Agreed to a Firm Commitment Underwriting in Which

question 53

Multiple Choice

Reliant Underwriters has agreed to a firm commitment underwriting in which they will pay $36.75 million in exchange for 3 million shares of stock for an IPO offering. The offering price is expected to be $13.50 a share. How much will the underwriters earn if all of the shares can be sold?

• A)$1.25 million
• B)$2.75 million
• C)$3.75 million
• D)$4.25 million
• E)$4.50 million

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