When a firm needs to raise funds in the financial markets, it usually uses the services of an investment banker. Last year Maverick Inc. entered into an agreement with Ginobli Partners, an investment bank. At the time of issue, Ginobli Partners has agreed to purchase all offered shares from Maverick and then try to sell all shares in the primary market. What kind of arrangement is this? A best efforts arrangement An underwritten agreement In the event that an issuer elects to use an underwritten arrangement, who bears all the risk that the stock issue might be undersubscribed? In other words, who is at risk if the investment bank cannot sell all shares to investors at the time of issue?

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer