Question 2 (1 Point)

An investment bank pays $22.50 per share for 5 million shares of CODIAK in a firm commitment stock offering. It then can sell those shares to the public for $25 per share. How much money does CODIAK receive? What is the profit to the investment bank? What is the stock price of CODIAK?

Question 3 (1 point)

The RAP company has issued 7,000,000 new shares. Its investment bank agrees to underwrite these shares. The investment bank is able to sell 6,300,000 shares for $45 per share. It charges RAP $1.85 per share sold. How much money does RAP receive? What is the investment banks profit? What is the stock price of RAP?