An IPO can end up at a share price of either 3 or 10. As discussed in

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An IPO can end up at a share price of either 3 or 10. As discussed in the class example, there are two bidders, informed and uninformed. Two shares are offered and the bidders can bid for up to two shares.

What is the highers price that will still entice the uninformed bidders to particpate?

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Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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Posted Date: Jul 08, 2023 04:38 AM

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An IPO can end up at a share price of either 3 or 10. As discussed in

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Expert Answer:

To determine the highest price that will still entice uninformed bidders to participate we need to c... View the full answer

Understanding Financial Accounting

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