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A corporation wants to conduct an IPO and become publicly traded. The company wants to sell 1 0 million shares at a price of $

A corporation wants to conduct an IPO and become publicly traded. The company wants to sell 10 million shares at a price of $12 per share. An investment bank agrees to underwrite the issue using a best efforts offering. The bank concludes that they can sell 10 million shares at a price of $9 per share. In addition, the investment bank charges $0.50 per share in commission. What is the profit to the investment bank from this transaction?
Multiple Choice
$30 million
$5 million
$4.5 million
-$30 million
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