Deere and Bros. is a broker that brings new issues of small firms to the public market. Its most recent deal for Dextra, Inc., had the following characteristics:
Number of shares: 1,000,000
Proceeds to Dextra: 12,100,000
Price to public: $17 per share
The legal fees were $155,000, printing costs were $56,000, and all the other expenses were $73,000. What is the profit or loss for Deere and Bros.?
Profit / (Loss) $