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Profit or Loss on New Stock IssueSecurity 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 $500,000. What profit orloss would Security Brokers incur if the issue were sold to thepublic at the following average price?$5.25 per share? Use minus sign to enter loss, if any.$$6.25 per share? Use minus sign to enter loss, if any.$$4 per share? Use minus sign to enter loss, if any.$
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