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An Investment Banker Agrees to Underwrite an Issue of 10

Question 111

Multiple Choice

An investment banker agrees to underwrite an issue of 10 million shares of stock for Rochester Industries on a best-efforts basis. The investment banker is able to sell 8 million shares for $10.50 per share, and it charges Rochester Industries $0.225 per share sold.
-If the investment bank were able to sell all 10 million shares for $12.75 per share,how much money does Rochester Industries receive?


A) $127,500,000.
B) $125,250,000.
C) $105,675,000.
D) $102,000,000.

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