Your investment bankers price your IPO at $14.65 per share for 9.8 million shares. If the price

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Your investment bankers price your IPO at $14.65 per share for 9.8 million shares. If the price at the end of the first day of trading is $16.85 per share,

a. What was the percentage underpricing?

b. How much money did the firm miss out on due to underpricing?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 21, 2024 10:00 AM

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Your investment bankers price your IPO at $14.65 per share for 9.8 million shares. If the price

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a To calculate the percentage underpricing you can use the followin...View the full answer

Fundamentals Of Corporate Finance

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