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    profit or loss for Security Brokers Inc

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    Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as 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 the design and distribution of the issue were $300,000. What profit or loss would Security Brokers incur if the issue were sold to the public at an average price of

    a. $5 per share? (Answer in book = $700,000)
    b. $6 per share? (Answer in book = $3,700,000)
    c. $4 per share? (Answer in book = -$2,300,000)

    © BrainMass Inc. brainmass.com October 9, 2019, 11:39 pm ad1c9bdddf
    https://brainmass.com/economics/finance/profit-loss-security-brokers-inc-263395

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    Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as 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 the ...

    Solution Summary

    The out-of-pocket expenses incurred are figured.

    $2.19