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An wawestmest bank agrees to underwrite an issue of 10 million shares of stock for ABC, Inc. on a firm commitment basis. The investment bank
An wawestmest bank agrees to underwrite an issue of 10 million shares of stock for ABC, Inc. on a firm commitment basis. The investment bank pays $31.50 per share to ABC, Inc. for the 10 million shares of stock. It then vella thove shares to the public for $33.00 per share. What is the profit (loss) to the investment bank? Format B
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