An investment bank pays $33.50 per share for 4 million shares of GM in a firm commitment

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An investment bank pays $33.50 per share for 4 million shares of GM in a firm commitment stock offering. It then can sell those shares to the public for $32 per share. How much money does GM receive?

What is the profit to the investment bank? What is the stock price of GM? (LG 16-2)

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 25, 2024 09:00 AM

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An investment bank pays $33.50 per share for 4 million shares of GM in a firm commitment

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Financial Markets And Institutions

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