Problem 18-01 Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering...

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Finance

Problem 18-01
Security Brokers Inc. specializes in underwriting new issues bysmall firms. On a recent offering of Beedles Inc., the terms wereas 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 thedesign and distribution of the issue were $280,000. What profit orloss would Security Brokers incur if the issue were sold to thepublic at the following average price?
$5 per share? Use minus sign to enter loss, if any._______$
$6 per share? Use minus sign to enter loss, if any._$
$4.25 per share? Use minus sign to enter loss, if any._______$

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Problem 18-01Security Brokers Inc. specializes in underwriting new issues bysmall firms. On a recent offering of Beedles Inc., the terms wereas follows:Price to public: $5 per shareNumber of shares: 3 millionProceeds to Beedles: $14,000,000The out-of-pocket expenses incurred by Security Brokers in thedesign and distribution of the issue were $280,000. What profit orloss would Security Brokers incur if the issue were sold to thepublic at the following average price?$5 per share? Use minus sign to enter loss, if any._____________$$6 per share? Use minus sign to enter loss, if any._____________$$4.25 per share? Use minus sign to enter loss, if any._____________$