Assume that a stock-issuing firm has a choice between a private placement selling the shares for $23.00 per share or a best efforts offering that will sell all available shares at the prices described in the following probability distribution: Best efforts expected probability distribution Probability Selling price Lowest quoted price 20% $22.50 Mid-range price 50% $24.00 Highest quoted price 30% $25.00 Assuming that the issue is fully subscribed, or sold, which method would generate the most capital for the issuing firm? O Best efforts sale Private placement A relatively new IPO selling method has developed: the unsyndicated stock offering. This arrangement provides the following advantage to the offering firm: O it is less expensive in terms of its total fees compared to the traditionally underwritten IPO it allows the managing underwriter to sell the issuing firm's shares to a smaller group of investors