Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 23, Problem 11P
Summary Introduction
To determine: The winning auction offer price of an IPO.
Introduction: When a company sells its share publically in an open market for the first time, it is known as initial public offering (IPO).
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Students have asked these similar questions
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Price ($)
Number of Shares
15.00
100,000
14.80
220,000
14.60
500,000
14.40
1,000,000
14.20
1,250,000
14.00
840.000
480,000
13.80
Roundtree had previously believed it would issue 1,800,000 shares; however, if Roundtree decides to issue an extra 547,000 shares (for a total of 2,347,000 shares), how much total money will it raise?
Roundtree will raise a total amount of $ million. (Round to one decimal place.)
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Price ($)
Number of Shares
14.00
160,000
13.80
220,000
13.60
560,000
13.40
1,100,000
13.20
1,250,000
13.00
800,000
12.80
480,000
Roundtree had previously believed it would issue 2,000,000 shares; however, if Roundtree decides to issue an extr
547,000 shares (for a total of 2,547,000 shares), how much total money will it raise?
...
Roundtree will raise a total amount of $ million. (Round to one decimal place.)
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Number of Shares
120,000
200,000
560,000
1,200,000
1,240,000
800,000
400,000
Price
$14.60
14.40
14.20
14.00
13.80
13.60
13.40
Assuming Roundtree would like to sell 2.08 million shares in its IPO, what will the winning auction offer price be?
The price will be $
per share. (Round to two decimal places.)
Chapter 23 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 23.1 - Prob. 1CCCh. 23.1 - Prob. 2CCCh. 23.2 - Prob. 1CCCh. 23.2 - Prob. 2CCCh. 23.3 - List and discuss four characteristics about IPOs...Ch. 23.3 - Prob. 2CCCh. 23.4 - Prob. 1CCCh. 23.4 - What is the average stock price reaction to an...Ch. 23 - Prob. 1PCh. 23 - What are the advantages and the disadvantages to a...
Ch. 23 - Prob. 3PCh. 23 - Suppose venture capital firm GSB partners raised...Ch. 23 - Prob. 5PCh. 23 - Prob. 6PCh. 23 - Prob. 7PCh. 23 - Prob. 8PCh. 23 - Prob. 9PCh. 23 - Prob. 10PCh. 23 - Prob. 11PCh. 23 - Prob. 12PCh. 23 - What is IPO underpricing? If you decide to try to...Ch. 23 - Prob. 14PCh. 23 - Prob. 15PCh. 23 - Prob. 16PCh. 23 - Prob. 17PCh. 23 - Prob. 18PCh. 23 - Prob. 19PCh. 23 - Prob. 20P
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