Question: Security Brokers Inc. completed a firm commitment underwriting for Beedles Inc. The terms were as follows: Price to public............................. $5 per share Number of shares.........................

Security Brokers Inc. completed a for 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 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?
b. $6 per share?
c. $4 per share?

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