TRD Warehouse Inc. (TRD) hires an investment bank to underwrite an issuance of 10 million shares of stock on a best-effort basis. If the bank sells 9.5 million shares for $11.20 per share and charges TRD $0.45 per share sold, How much is the bank's profit?

	A.	$4.275 MM
	B.	$102.125 MM
	C.	$4.5 MM
	D.	$106.40 MM

TRD Warehouse Inc. (TRD) hires an investment bank to underwrite an issuance of 10 million shares of stock on a firm commitment basis. The bank pays $10.50 per share to TRD and sells those shares to the public for $11.20 per share. What is the profit to the investment bank?

	A.	$112 MM
	B.	$105 MM
	C.	$7 MM
	D.	$7.5 MM

TRD Warehouse Inc. (TRD) hires an investment bank to underwrite an issuance of 10 million shares of stock on a best-effort basis. If the bank sells 9.5 million shares for $11.20 per share and charges TRD $0.45 per share sold, How much money does TRD receive?

	A.	$102.125 MM
	B.	$4.275 MM
	C.	$112.0 MM
	D.	$107.5 MM

Which of the following functions is commonly performed by broker-dealers?

	A.	They help public firms to issue additional securities to the market.
	B.	They help public firms to deal with mergers and acquisitions.
	C.	They help their retail and institutional clients to trade existing securities.
	D.	They help private firms to issue new securities to the market.

Which of the following firms are more likely to adopt best efforts when they issue new shares?

	A.	Firms with a lot of intangible assets
	B.	Smaller firms
	C.	New startup firms
	D.	Well known firms