Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
Question
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Chapter 23, Problem 16P

a.

Summary Introduction

To determine: The expected total amount that a firm raised from the 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).

b.

Summary Introduction

To determine: The market value of the firm after the IPO.

c.

Summary Introduction

To determine: The share price as per given case.

d.

Summary Introduction

To determine: The total cost to the firm’s original investors due to market imperfections from the IPO.

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