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

Price to public ……………………………..   $7.50 per share

Number of shares …………………………               3 million

Proceeds to Barenbaum …………………..  $21,000,000

Security Brokers incurred $450,000 in out-of-pocket expenses in the design and distribution of the issue. What profit or loss would Security Brokers incur if the issue were sold to the public at an average price of ………………………….?

a. $7.50 per share

b. $9.00 per share

c. $6.00 per share