An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch

An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.

1. How much money does TWResearch receive?
2. What is the profit (loss) to the investment banker?
3. If the investment bank can sell the shares for $9.75 per share, how much money does TWResearch receive?

 4. If the investment bank can sell the shares for $9.75 per share, what is the profit (loss) to the investment banker?
5. An open-ended fund has stocks of three companies: 200 shares of IBM currently valued at $50.00, 100 shares of GE currently values at $20 and 100 shares of Digital currently valued at $30. The fund has 500 shares outstanding. What is the net asset value (NAV) of the fund?

 6. An investor invests $100,000 in a mutual fund that has a 5 percent front-end load, charges a management fee of 0.5 percent, and a 12b-1 fee of 0.25 percent. The investor plans to leave the investment for one year. What is the dollar amount of the total shareholder cost?