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An irnestment bank agrees to underwrite an issue of 18 million shares of stock for looney landscaping Corporation. a. The investment bank underwittes the stocic

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An irnestment bank agrees to underwrite an issue of 18 million shares of stock for looney landscaping Corporation. a. The investment bank underwittes the stocic on a firm comimitrent basits, and agrees to pay 515.00 per share to l.ooricy Larudicaping Corporation for the 18 milion shares of stock. The imvestment bank thern selis thoseshares to the puiblic for $16. 25 per share How much money does Looney t andscaping Corporation receive? What is the profit to the investment bank? If the investrient bank can seli the shares for only 513.75, how much money does Looney Landscaping Corporation recelve? What is the profit to the investment bank? b. Suppose, instead, that the investment barik agrees to underwrite the 18 million shares on a best etforts basis. The investment bank is able to sell 176 milion shares for $15.00 per share, and it charges Looney Landscaping Corporation $0.325 per share sold. How much money does Looney Landscaping Corporation receive? What is the profit to the investment bank? If the investment bank can sell the shares for only $13.75, how much money does Looney Landscaping Corporation receive? What is the profit to the investrment bank? (For all requirements, enter your answers in dollars, not in millions. Negative armounts should be indicated by a minus sign.)

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