Specializes in underwriting new issues by small firms

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Reference no: EM131192514

Security Brokers Inc. specializes in underwriting new issues by small firms. On a recent offering of Beedles Inc., the terms were as follows: Price to public $5 per share Number of shares 3 million Proceeds to Beedles $14,000,000 The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $230,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price?

Reference no: EM131192514

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