Steel City Motors wants to have an initial public offering. Their investment bank presents two options for the initial issue: a fixed commitment offer of $7,500,000, or a best-efforts arrangement where the investment bank receives $2.30 per share offered to the public. Steel City intends to sell 1,000,000 shares at a price of $9. If 70% of the shares are sold at the predetermined price, which arrangement should Steel City choose? Fixed-commitment arrangement because it provides additional proceeds of $2,443,478 Best efforts arrangement because it provides additional proceeds of $2,124,764 Fixed-commitment arrangement because it provides additional proceeds of $2,810,000 Best efforts arrangement because it provides additional proceeds of $2,810,000 Best efforts arrangement because it provides additional proceeds of $2,443,478 L A Moving to another question will save this response. esc ock ! #3 80 $ 24 000 DOD MacBook Pro % 805 6 7 27 Q W E R T Y U 1 2 A N S X D C LL F G > B H * 00 8 1 ( ) 9 0 Question 28 of 31 I = + " { 0 P [ J K L N M V V 11 = ? }