13.23 Bellex Technologies agreed to complete its IPO on a best-effort basis. The company's investment bank demanded
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Question:
Bellex Technologies agreed to complete its IPO on a best-effort basis. The company's investment bank demanded a spread of 7 percent of the offer price, which was set at $26.80 per share. Three million shares were issued; however, the bank was overly optimistic and eventually was able to sell all of the stock for only $24.70 per share. What were the proceeds for the issuer and the underwriter?
Proceeds to issuer$
Proceeds to underwriting$
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