Pills4u.com and Drugs-R-Us Co. both sell prescription medications over the Internet. Each company has recently announced an
Question:
a. If you are allocated the full 1,000 shares of each new issue, how much profit will you make when the shares adjust to their true value?
b. If an issue is undervalued, it will be rationed, and you will only get half your order. What profit do you expect in this situation?
c. If an issue is undervalued, it will be rationed, and you will only get one-fifth of your order. What profit do you expect in this situation?
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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