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Firm commitment versus best efforts. Astro Investment Bank offers Lunar Vacatons the following optons on its initial publie salo of equity. (a) a best ellorts

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Firm commitment versus best efforts. Astro Investment Bank offers Lunar Vacatons the following optons on its initial publie salo of equity. (a) a best ellorts arargement whereby Astro wil knep 2.7% of the retal sales or (b) a firm commitment arrangement of $10,500,000. Lunar plans on offering 1.000,000 shares at $11.49 per share to the putfe. If a salls 100% of the atieres, which is the betier choice for Lunar Vacations? Which is the better choice for Astro lnvestment Aank

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