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Question
An investment banker agrees to underwrite an issue of 10 million shares of stock for Rochester Industries on a best-efforts basis. The investment banker is able to sell 8 million shares for $10.50 per share, and it charges Rochester Industries $0.225 per share sold.
If the investment bank were able to sell all 10 million shares for $12.75 per share, how much money does Rochester Industries receive?
A. $127,500,000.
B. $125,250,000.
C. $105,675,000.
D. $102,000,000.
E. $99,000,000.
Answer
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