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The major function of investment banks is to help firms to finance via issuing debt...

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Finance

The major function of investment banks is to help firms to finance via issuing debt or equity. Assume that there are no other costs and expenses. A company wants to sell 2.5 million shares of stock to the public using a best efforts offering. The actual sale price to the public is $15 and the investment bank charges 5 cents per share sold as commission. Assume that only 1.85 million shares can be sold. What are the proceeds to the company from the sale of stock?

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