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Determine lajolla securities profit on the offering

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Reference no: EM133123702

Question - LaJolla Securities Inc. specialises in the underwriting of small companies. The terms of a recent offering were as follows:

Number of shares 2 million

Offering price $25 per share

Net proceeds $45 million

Required - LaJolla Securities' expenses associated with the offering were $500,000. Determine LaJolla Securities' profit on the offering if the secondary market price of the shares immediately after the offering began were as follows:

1. $23 per share

2. $25 per share

3. $28 per share

Reference no: EM133123702

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