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Question
Reliant Underwriters has agreed to a firm commitment underwriting in which they will pay $36.75 million in exchange for 3 million shares of stock for an IPO offering. The offering price is expected to be $13.50 a share. How much will the underwriters earn if all of the shares can be sold?A. $1.25 million
B. $2.75 million
C. $3.75 million
D. $4.25 million
E. $4.50 million
Answer
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