13.21

Deere and Bros. is a broker that brings new issues of small firms to the public market. Its most recent deal for Dextra, Inc., had the following characteristics:

Number of shares:

1,000,000

Proceeds to Dextra:

13,230,000Price to public:

$16per share

The legal fees were $153,000, printing costs were $58,000, and all the other expenses were $74,500. What is the profit or loss for Deere and Bros.?

Profit / (Loss)$