Problem #5 (Investment Banking) An investment bank agrees to underwrite an issue of 20,000,000 shares of stock for Murray Construction Corp. on a firm commitment basis. The investment bank pays $15.50 per share to Murray Construction Corp. for the 20,000,000 shares of stock. It then sells those shares to the public for $16.35 per share. (a) How much money does Murray Construction Corp. receive? What is the profit to the investment bank? (b) If the investment bank can only sell the shares for 14.75, how much money does Murray Construction Corp. receive? What is the profit to the investment bank? Suppose instead the investment bank agrees to underwrite these 20,000,000 shares on a best efforts basis. The investment bank is able to sell 18,400,000 shares for $15.50 per share, and it charges Murray Construction Corp. $0.375 per share sold. (c) How much money does Murray Construction Corp. receive? What is the profit to the investment bank? (d) If the investment bank can only sell the shares for 14.75, how much money does Murray Construction Corp. receive? What is the profit to the investment bank?