Which of the following is correct if an underwriter is selling stock to the public at $40 per share, the underwriter receives a $3 per share spread, 2 million shares are sold, and the issuing firm receives $111 million from the underwriter?

A. The underwriter's spread was greater than $3
B. The issue appreciated in price immediately
C. The issue included 3 million shares
D. The stock was issued on a best efforts basis

Ans: C. The issue included 3 million shares

Business

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