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 2.5% of the retail sales or (b) a firm commitment arrangement of $10,300,000. Lunar plans on offering 1,000,000 shares at $12.69 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.) P15-12 (similar to) Question Help Selling bonds. Rawlings needs to raise $44,300,000 for its new manufacturing plant in Jamaica. Berkman Investment Bank will sell the bond for a commission of 2.5%. The market yield is currently 7.9% on twenty-year zero-coupon bonds. If Rawlings wants to issue a zero-coupon bond, how many bonds will it need to sell to raise the $44,300,000? Assume that the bond is semiannual and issued at a par value of $1,000 How many bonds will Rawlings need to sell to raise the $44,300,000? (Round to the nearest whole number.)