Margoles Publishing recently completed its IPO. The stock was offered at a price of $16 per share.

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Margoles Publishing recently completed its IPO. The stock was offered at a price of $16 per share. On the first day of trading, the stock closed at $22 per share. What was the initial return on Margoles? Who benefited from this underpricing? Who lost, and why?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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