1. What is the break-even point in number of shares for Lunar Vacations?

2. What are the proceeds to Lunar Vacations at the break-even point?

3. What are the proceeds to Astro Investment Bank at the break-even point?

Firm commitment versus best efferts. Astro Investment Bank offers Lunar Vacations the following options on its initial public sale of equity: (a) a best efforts arrangement whereby Astro will keep 2.7% of the retail sales or (b) a firm commitment arrangement of $10,300,000. Lunar plans on offering shares at $11.78 per share the public. What is the break-even point in number of shares for Lunar Vacations? What are the proceeds to Lunar Vacations and Astro Investment Bank at the break-even point