An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corp.

The investment bank underwrites the stock on a firm commitment basis, and agrees to pay $12.50 per share to Looney Landscaping Corp. for the 15 million shares of stock. The investment bank then sells those shares to the public for $11.95 per share. How much money does Looney Lanscaping Corp. receive? What is the profit to the investment bank? (4 Marks)