Security Brokers, Inc., specializes in underwriting new issues by small firms. On a recent offereing of Beedles, Inc., the terms were s follows:

Price to public $5 per share

Number of sahres 3 million

Proceeds to Beedles $14,000,000

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

a. $5 per sahre

b. $6 per share

c. $4 per sahre