Profit or Loss on New Stock Issue Security Brokers Inc. specializes in underwriting new issues by small...

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Profit or Loss on New Stock Issue
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 $470,000. What profit orloss would Security Brokers incur if the issue were sold to thepublic at the following average price?
a. $5.5 per share? Use minus sign to enter loss, if any.
b. $7 per share? Use minus sign to enter loss, if any.
c. $3.5 per share? Use minus sign to enter loss, if any.

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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 $470,000. What profit orloss would Security Brokers incur if the issue were sold to thepublic at the following average price?a. $5.5 per share? Use minus sign to enter loss, if any.b. $7 per share? Use minus sign to enter loss, if any.c. $3.5 per share? Use minus sign to enter loss, if any.

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