I have a finance question:?

The little company you and your friend started in your parents鈥?garage has grown so much that you are now ready to take the firm public. In your discussions with one of the top investment dealers, you have been given a choice between two alternatives:
Plane I: the investment dealer will underwrite the issue of 1 million shares at $14 per share. There will be an underwriting fee of 6.5 percent of the gross proceeds.
Plan II: the investment dealer will accept the securities on a best efforts basis. The price will be $15 per share, and it is believed that 95 percent of the shares will be sold. The investment dealer鈥檚 fee will be $950,000.
What will the net proceeds be under each plan? Which plan should you accept?

I found the net proceeds in plan I =13,160,000
but i don't know how to find it in plan II, and how to explain my answer.

does anyone know how to solve this problem plz?

1,000,000 x .95 = 950,000 x 15 =14,250,000 - 950,000=13,300,000

Tags

　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

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