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The MEP company has issued 5,050,000 new shares. Its investment bank agrees to underwrite

The MEP company has issued 5,050,000 new shares. Its investment bank agrees to underwrite

The MEP company has issued 5,050,000 new shares. Its investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 4,250,000 shares for $57 per share. It charges MEP $1.50 per share sold.

a. How much money does MEP receive?

b. What is the investment bank’s profit?

c. What is the stock price of MEP?

a. How much money does MEP receive?

b. What is the investment bank’s profit?

c. What is the stock price of MEP?

Abhinav 01-Dec-2019

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