LaJolla Securities Inc. specializes in the underwriting of small companies. The terms of a recent offering were as follows
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Number of shares
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2 million
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Offering Price
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$ 25 per share
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Net Proceeds
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$ 45 million
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LaJolla Securities' expenses, associated with the offering, were $500,000. Determine LaJolla Securities' profit on the offering if, immediately after the offering began, the secondary market price of each share was as follows:
a. $23 per share
b. $25 per share
c. $28 per share