Question

An investment banker agrees to a firm commitment offering of 1.2 million shares of Bally stock. The offer price is set at $25.50 and the spread is 30 cents per share. If the stock is actually sold to the public at $26.00, however, what is the amount of funds Bally receives? A) $31,200,000B) $30,600,000C) $30,240,000D) $29,280,000E) $28,120,000

Answer 1

C.

Step-by-step explanation:

($25.50 - $0.30) x 1,200,000 = $30,240,000