Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
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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