LaJolla Securities, Inc. specializes in the underwriting of small companies The terms of a recent offering were as follows:

Question

Number of shares 2 million
Offering price $25 per share
Net proceeds $45 million

LaJolla Securities expenses, associated withthe 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