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Question 29 Steel City Motors wants to have an initial public offering. Their investment bank presents two options for the initial issue: a fixed commitment offer of $10,800,000, or a best-efforts arrangement where the investment bank receives $1.30 per share offered to the public. Steel City intends to sell 1,000,000 shares at a price of $13. If 70% of the shares are sold at the predetermined price, which arrangement should Steel City choose? (13- Fixed-commitment arrangement because it provides additional proceeds of $2,610,000 Best efforts arrangement because it provides additional proceeds of $2,610,000 Best efforts arrangement because it provides additional proceeds of $3,001,500 Best efforts arrangement because it provides additional proceeds of $3,451,725 Fixed-commitment arrangement because it provides additional proceeds of $3,451,725