Question

Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.

Your investment bankers price your IPO at
$14.67 per share for 10.5 million shares. If the
price at the end of the first day of trading is
$16.52 per share, what was the percentage
underpricing?
11.1%
14.1%
12.6%
10.6%

Image Transcription

Your investment bankers price your IPO at $14.67 per share for 10.5 million shares. If the price at the end of the first day of trading is $16.52 per share, what was the percentage underpricing? 11.1% 14.1% 12.6% 10.6%

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