How is the IPO price of a stock determined? Is that price likely to be the stocks

Question:

How is the IPO price of a stock determined? Is that price likely to be the stock’s intrinsic value?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Practical Financial Management

ISBN: 978-1133593683

7th edition

Authors: William R. Lasher

See More Books

Question Posted: May 14, 2015 11:10 AM

See More Questions

How is the value of a stock determined using the dividend discount model (DDM) method? What are the limitations of the DDM method?
Is the futures price of a stock index greater than or less than the expected future value of the index? Explain your answer.
The current price of a stock is $20. In 1 year, the price will be either $26 or $16. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and...
We have titrated natural water in which the primary buffering agent is carbonate species and understood how to predict the titration curve using the equilibrium constants of those weak acids. Plot...
a-c. Consider the accompanying computer results, which describe regression analyses involving two independent variables X1 and X2 and a dependent variable Y (using a different data set from the one...
a) Perform the floating point addition. b) Draw an SM chart for a floating-point adder that adds F 1 x 2 E1 and F 2 x 2 E2 . Assume that the fractions are initially normalized (or zero) and the final...
Given the Irwin-Hall distribution with pdf, \[f_{Y}(y)=\frac{1}{2(n-1) !} \sum_{k=0}^{n}(-1)^{k}\left(\begin{array}{l}n \\k\end{array} ight)(y-k)^{n-1} \operatorname{sign}(y-k)\] where the sign...
After Jack purchases his phone and data plan, is it likely that he experienced cognitive dissonance with his purchase? What evidence makes you answer the way you did?
Name Gross Earnings Taxable Wages for Federal W/H Taxable Wages for FICA Federal W/H Social Security Tax Medicare Tax State W/H Garnishment United Way Net Pay Check Number\ Rosenberg, A. $688.00...
The provisions of a will currently undergoing probate are: "One thousand shares of Wal-Mart Stores stock to my son; $10,000 in cash from my Astoria Savings Bank account to my brother; $5,000 in cash...
Is the IPO Pop experienced by most new stocks likely to be a reflection of market forces driving shares toward their intrinsic values?
General Machine Works Inc. (GMW) has been losing money for some time but has managed to maintain an annual dividend of $1.. The companys strategy is to restructure by getting smaller while working on...
Graham Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per...
List the five mystification factors and their relationship to reality.
Describe the six aspects of strategy and execution governance.
Why is matching the organizational design to business processes important?
What is usually the best method to create the TOM components?
Why is it important to clearly understand what your business drivers and triggers are?
What are discontinued operations? Why is it important to report discontinued operations separately from profit or loss from continuing operations?
Determine two different Hamilton circuits in each of the following graphs. A B F G
The interest rate outlook for Montrose Inc., a large, financially sound company, is reflected in the following information. The pure rate of interest is 4%. Inflation is expected to increase in the...
Atkins Company has just issued a series of bonds with 5- through 10-year maturities. The companys default risk is .5% on 5-year bonds, and grows by .2% for each year thats added to the bonds term....
Assume that interest rates on federal government bonds are as follows: 1-year .......6.5% 2-year .......6.3% 3-year .......6.0% 4-year .......5.8% 5-year .........5.5% 10-year .......5.2% 15-year...
Write summary of 300 words, with references and 2 question regarding the Feminist Work and Community Education Viv Rogers The concept of community education is subject to similar confusions of...
Explain scanning the internal and external environment of the organization.
ANSWER ALL QUESTIONS 1. Illustrate and explain with examples the risk-return trade off graph of money market, foreign exchange market, bond market, equity market and derivatives market. State and...

How is the IPO price of a stock determined? Is that price likely to be the stocks

Question:

Step by Step Answer:

Company executives working with investment bankers estimate a range of prices for t...View the full answer

Practical Financial Management

Students also viewed these Finance questions