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If the investment bank underwrites a stock on a firm commitment basis, it agrees to pay $14 per share to the company seeking to go
If the investment bank underwrites a stock on a firm commitment basis, it agrees to pay $14 per share to the company seeking to go public for the first time for 18 million shares. It can then sell those shares for $17 per share? How much money does the company wishing to go public receive? What is the profit for the investment bank? What happens if the investment bank is only able to sell the shares for $13 per share?
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