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All questions please! Firm commitment versus best efforts. Astro Investment Bank offers Lunar Vacations the following options on its initial public sale of equily. (a)
All questions please!
Firm commitment versus best efforts. Astro Investment Bank offers Lunar Vacations the following options on its initial public sale of equily. (a) a best effurts arrangement whereby Astro will keep 2.5% of the retail sales or (b) a firm commitment arrangoment of 59.000 .000 . Lunar plans on offerling 1,000.000 sharss at $12.66 per share to the public. If it sells 100% of the shares. which is the better choice for Lunar Vacations? Which is the better choice for Autro Investment Bank? Under the best efforts arrangement what are the proceeds for Lunar Vacations? (Round to the nearest dollar.) Step by Step Solution
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