Solution-Design and distribution of the issue

Design and distribution of the issue

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Reference no: EM132483024

Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows:

Price to public: $5 per share. Number of shares: 3 million. Proceeds to Beedles: $14,000,000

The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $280,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price?

$5.25 per share? Use minus sign to enter loss, if any
$6.25 per share? Use minus sign to enter loss, if any.
$3.75 per share? Use minus sign to enter loss, if any.

Reference no: EM132483024

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Design and distribution of the issue

Reference no: EM132483024

Reference no: EM132483024

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