Question

An investment bank agrees to pay $26.75 for 5 million shares of a company in a firm commitment stock offer­ing. It then can sell those shares to the public for $25.50 per share. What is the profit to the investment bank?

Answer 1

Answer: The answer is $1.25 profit

Explanation:

The investment bank makes $1.25 profit per share. In which if all the shares are sold the revenue is $6,250,000.