Your investment bankers price your IPO at $15 per share for 10 million shares. If the price
Question:
Your investment bankers price your IPO at $15 per share for 10 million shares. If the price at the end of the first day of trading is $17 per share,
a. What was the percentage return on the first day of trading?
b. How much money did the firm miss out on due to underpricing?
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0321818171
2nd Canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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