e$.4,000,000$

$6.$ Devine Linens $($DL$)$ must raise $$14,000,000$ to support future growth. If it raises the funds by issuing stock, DL must pay an investment banker $5$ percent of the total amount issued plus $$250,000$ in other costs associated with the issue. What is the amount of stock that DL must issue to net $$14,000,000$ after flotation costs?

a$.$ $$14,962,500$

b$.$ $$14,950,000$

c$.$ $$14,737,092$

d$.$ $$15,000,000$

e$.$ $$13,537,500$

$7.$ The process by which commercial banks transform funds provided by savers into funds used by borrowers is called

a$.$ investment banking

b$.$ shelf registration

c$.$ diversification

d$.$ underwriting

e$.$ financial intermediation

$8.$ Organizations that create various loans and investments from funds provided by depositors are known as

a$.$ investment banks

b$.$ financial intermediaries

c$.$ derivatives markets

d$.$ over$-$the$-$counter markets

e$.$ designated market makers