D. Answers A and C only E. Answers B and C only Question S-6 An investment banker agrees S10.50 per share, and it charges Rochester 5. How much money does Rochester Industries receive? rs basis. The investment banker is able to sell 8 million shares for Industries $0.225 per share sold to underwrite an issue of 10 million shares of stock for Rochester A. $15,000,000 B. $84,000,000 ?$76,200,000 D. $82,200,000 E. $110,000,000 6. What is the profit to the share? nvestment banker if it is able to sell 8 million shares for $10.50 per A. Profit of S1,000,000 B. Loss of $7,500,000 C. Profit of $7,000,000 D. Loss of $7,000,000 E. Profit of $1,800,000 7. Which of the following is not true about private placement? A the underwriting function cannot be avoided. B. the sale of securities directly to the ultimate investor C a fee is earmed for the origination/selling or uniting the supplier and user of f D. a private placement may reduce the total flotation costs for a business. E it is used by both lesser-known firms and large, well-known firms in need of funds and not through a public offering. 8. The BIS definition: "the risk of loss resulting from inadequate or failed internal processes. people, and systems or from external events," encompasses which of the following risks? A. Credit risk and liquidity risk B. Operational risk and technology risk C. Credit risk and market risk D. Technology risk and liquidity risk E. Sovereign risk and credit risk 9. A small local bank failed because a housing market collapse following the departure of the area's largest employer. What type of risk applies to the failure of the institution? A. firm-specific risk B. technological risk C operational risk D. sovereign risk E. insolvency risk