Question: Please show your work I am lost and need help, if you can show me how to do this that would be extremely helpful. IPO
Please show your work I am lost and need help, if you can show me how to do this that would be extremely helpful.
- IPO (Slide 9) (see the attached excel file) -- Complete the answers to (a) (b) (c) (d) (e) for the following IPOs:
| Name | TWITTER INC | UBER TECHNOLOGIES INC | SNOWFLAKE INC-CLASS A | DOORDASH INC - A |
| Ticker | TWTR US Equity | UBER US Equity | SNOW US Equity | DASH US Equity |
| IPO Date | 11/7/2013 | 5/10/2019 | 9/16/2020 | 12/9/2020 |
| No. of IPO Shares Offered (in Millions) | 70.00 | 180.00 | 28.00 | 33.00 |
| IPO Offering Price | $26.00 | $45.00 | $120.00 | $102.00 |
| First Day Open Price | $45.10 | $42.00 | $253.93 | $182.00 |
| First Day Closing Price | $44.90 | $41.57 | $245.00 | $189.51 |
| Last Price (as of 02/09/2021) | $59.87 | $59.61 | $314.29 | $188.00 |
| (a) IPO Proceeds (offer amount in million USD) |
|
|
|
|
| (b) Amount of Money Left on the Table (in million USD) |
|
|
|
|
| (c) IPO Underpricing: First Day Return from IPO Offering Price to first day Closing Price |
|
|
|
|
| (d) Return from IPO Offer Price to Last Price (as of 02/09/2021) |
|
|
|
|
| (e) Return from IPO first day closing price to last price (as of 02/09/2021) |
|
|
|
|
Should show the calculations step-by-step or in excel formulas.
- Margin Trading (slide 27)
An investor opens her first brokerage account, and purchases 500 shares of a stock at $50 per share. She borrows $12,000 from her broker to help pay for the purchase. The interest rate of the loan is 8%.
- What is the initial margin in her account when she first purchases the stock?
- If the price falls to $42 per share by the end of the quarter, what is the remaining margin in her account? If the maintenance margin requirement is 35%, will she receive a margin call?
- What is the rate of return on the investment if she sells the shares at the end of the quarter at $42 per share?
- Short Sales (slide 32)
You sold short 200 shares of a stock at $125 per share. The initial margin is 50%.
- At what stock price would you receive a margin call if the maintenance margin is 30%? (do not consider dividends in question a)
- Assume that the stock paid a $0.40 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $110 per share at the end of the year?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
Study Help