The MEP Company has issued 5,000,000 new shares. Its investment bank agrees to underwrite these shares on

Question:

The MEP Company has issued 5,000,000 new shares. Its investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 4,200,000 shares for $ 54 per share. It charges MEP $ 1.25 per share sold. How much money does MEP receive? What is the investment bank’s profit? What is the stock price of MEP?