Fundamentals of Corporate Finance Plus MyFinanceLab with Pearson eText -- Access Card Package
Fundamentals of Corporate Finance Plus MyFinanceLab with Pearson eText -- Access Card Package
3rd Edition
ISBN: 9780133576870
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
Question
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Chapter 15, Problem 4CQ

a.

Summary Introduction

To determine: The value of the company at the given price and percentage of the underpriced deal.

b.:

Summary Introduction

To Determine: The cost borne by the existing shareholders by the underpricing.

c.:

Summary Introduction

To Determine: The fraction of the equity owned by H and Worth of H’s share after the IPO.

d.:

Summary Introduction

To Determine: Company’s debt-equity ratio, the ratio of the book value of debt outstanding to the market value of equity.

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