C. Mason Merchant Banking offers Phoenix Pharmaceuticals the following options on its initial public sale of equity: (1) a best-efforts arrangement whereby Mason will keep 3 % of the retail sales or (2) a firm-commitment arrangement of $9,000,000. Phoenix plans on offering 1,500,000 shares at $11.25 per share to the public. If 100% of the shares are sold, which is the better choice for Phoenix Pharmaceuticals? Which is the better choice for mason Merchant Banking? What is the break-even sales percentage for Phoenix (point of indifference) and what will each party receive at the break-even sales percentage? (4 marks)