The MEP company has issued 5,090,000 new shares. Its investment bank agrees to underwrite these shares on a best efforts basis. The investment bank is able to sell 4,290,000 shares for $54 per share. It charges MEP $1.70 per share sold.
a. How much money does MEP receive? (Do not round intermediate calculations.)
Amount received by MEP $
b. What is the investment bank’s profit?
Investment bank’s profit $
c. What is the stock price of MEP?
Stock price of MEP $