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A firm plans to issue 1 million shares to the market. An underwriter enters into the best effort commitment to sell the shares at $20

A firm plans to issue 1 million shares to the market. An underwriter enters into the best effort commitment to sell the shares at $20 each, including a 2% spread. How much does the issuing firm receive if only 500,000 shares are sold? A. $18.2 million B. $20 million C. $10.8 million D. $9.8 million

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