A publicly traded Toronto firm has decided to issue 1 million new shares of common stock at the current market price of $10 per share. An underwriting syndicate pays the firm $9.3 million for the entire issue and then markets the shares at $10 each. This is an example of a(n) :
A) Indirect cost.
B) Lock-up agreement pricing.
C) Firm commitment underwriting.
D) A best-efforts underwriting.
E) An underpricing situation.
Correct Answer:
Verified
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