Companys shares on best efforts basis

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Reference no: EM13847046

Goode Investment Bank agrees to underwrite 1,000,000 CFS Company’s shares on a best efforts basis. It then sells 800,000 shares to the public for $20 each. The agreement is that Goode will charge 1.50 per share sold.

a. How much money does CFS receive?

b. How much money does CFS pay?

c. What Is Goode’s profit?

d. What is the stock price of CFS?

Reference no: EM13847046

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