Fortune Hotels issues an IPO on a best-effort basis. The company's investment bank requires a spread of 20 percent of the selling price. Five million shares are issued. The average selling price is expected to be $31. How much did the investment bank receive?
A) $22.0 million
B) $27.5 million
C) $31.0 million
D) None of the above
Correct Answer:
Verified
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