Great Plains Investment Inc.(GPI),an investment banking firm,has proposed two types of payment plans for the IPO being considered by Ashford Community Hospital.The first is a firm commitment of $7,000,000.The second is a best efforts arrangement in which GPI will receive $2.00 for every share sold up to a maximum of $1,000,000 for the 500,000 shares being offered.How much money will GPI earn under the best efforts method if it is able to sell only 75% of the offering at a price of $20.00 per share?

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The Answer of Great Plains Investment Inc.(GPI),an investment banking firm,has proposed two types of payment plans for the IPO being considered by Ashford Community Hospital.The first is a firm commitment of $7,000,000.The second is a best efforts arrangement in which GPI will receive $2.00 for every share sold up to a maximum of $1,000,000 for the 500,000 shares being offered.How much money will GPI earn under the best efforts method if it is able to sell only 75% of the offering at a price of $20.00 per share?