An investment bank agrees to pay $26.75 for 5 million shares of a company in a firm commitment stock offering. It then can sell those shares to the public for $25.50 per share. What is the profit to the investment bank?
A) Profit of $6,250,000
B) Loss of $6,250,000
C) Loss of $5,000,000
D) Loss of $7,500,000
E) Profit of $1,000,000
Correct Answer:
Verified
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