Question
XYZ, Inc. has issued 13 million new shares of stock. An investment bank agrees to underwrite these shares on a best efforts basis. The investment
XYZ, Inc. has issued 13 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 11.5 million shares for $23 per share, and it charges XYZ $0.715 per share sold. a. How much money does XYZ receive? (Enter your answer in dollars, not in millions. Do not round intermediate calculations.) b. What is the profit to the investment bank? (Enter your answer in dollars, not in millions. Do not round intermediate calculations.) c. What is the stock price of XYZ? (Enter your answer in dollars, not in millions.)
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