Secruity Brokers INC. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows:

Price to public $5 per share

Number of shares 3 million

Proceeds to Beedles $14,000,000

The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the the issue were $300,000. What profit or loss would security brokers incur if the were sold to the public at the following average price?

a. $4.50 per share

b. $6.50 per share

c. $4.25 per share