Question: 1. A small, but recently successful, iOS app developer has approached an investment banking firm to raise $24,500,000 through an IPO of 5 million shares.

1. A small, but recently successful, iOS app developer has approached an investment banking firm to raise $24,500,000 through an IPO of 5 million shares. If the investment banking firm has out of pocket cost of $586,000 what will its profit or loss if issue price is $5.00 per share? What about $6 per share?

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