Determine the profit to investment bank


Response to the following problem:

An investment bank pays $33.50 per share for 4 million shares of GM Company in a firm commitment stock offering. It then can sell those shares to the public for $32 per share. How much money does GM receive? What is the profit to the investment bank? What is the stock price of GM?

Provide step by step calculations.

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Financial Accounting: Determine the profit to investment bank
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