Which one of the following is correct if an underwriter is selling stock to the public at $40 per share, the underwriter receives a $3 per share spread, 2 million shares are sold, and the issuing firm receives $111 million from the underwriter?
A) The underwriter's spread was greater than $3.
B) The issue appreciated in price immediately.
C) The issue included 3 million shares.
D) The stock was issued on a best efforts basis.
Correct Answer:
Verified
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