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XYZ, Inc., has issued 10 million new shares of stock. An investment bank agrees to underwrite these shares on a best efforts basis. The investment

XYZ, Inc., has issued 10 million new shares of stock. An investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 8.6 million shares for $25 per share, and it charges XYZ $0.725 per share sold.

a. How much money does XYZ receive after commission?

b. What is the profit to the investment bank?

c. What is the stock price of XYZ?

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