Firm commitment versus best efforts. Astro Investment Bank offers Lunar Vacations the following options on its initial public sale of equity: (a) a best efforts arrangement whereby Astro will keep 2.1% of the retail sales or (b) a firm commitment arrangement of $9,500,000. Lunar plans on offering 1,000,000 shares at $12.96 per share to the public. If it sells 100% of the shares, which is the better choice for Lunar Vacations? Which is the better choice for Astro Investment Bank? Under the best efforts arrangement, what are the proceeds for Lunar Vacations? (Round to the nearest dollar.) Commercial paper. Criss-Cross Manufacturers will issue commercial paper for a short-term cash inflow. Criss-Cross must raise $5,550,000, and the paper will have a maturity of 182 days. If this paper has a maturity value of $50,000 and is selling at an annual interest rate of 8.8%, what are the proceeds from each paper; that is, what is the discount rate on the commercial paper? What is the discount rate on the commercial paper? ]% (Round to two decimal places.)