Your investment bankers price your IPO at $15.23 per share for 10.6 million shares. If the price at the end of the first day of trading is $16.95 per share, a. what was the percentage underpricing? b. how much money did the firm miss out on due to underpricing?
Your investment bankers price your IPO at $15.23 per share for 10.6 million shares. If the price at the end of the first day of trading is $16.95 per share, a. what was the percentage underpricing? b. how much money did the firm miss out on due to underpricing?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 5P: A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company’s...
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Your investment bankers price your IPO at
$15.23
per share for
10.6
million shares. If the price at the end of the first day of trading is
$16.95
per share,a. what was the percentage underpricing?
b. how much money did the firm miss out on due to underpricing?
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