QUESTION $43$

Why is underpricing not a great concern with bond offerings?

Use the following information to answer the following questions:

apparently underpriced by about $$13\mathrm{.}50$ each, meaning that the company missed out on an additional $$135$ million.

a$.$ Yields on comparable bonds can usually be readily observed, so pricing a bond issue accurately is much less difficult.

b$.$ Yields on comparable bonds cannot usually be readily observed, so pricing a bond issue accurately is much more difficult.

QUESTION $44$

Use the following information to answer the next question:

apparently underpriced by about $$13\mathrm{.}50$ each, meaning that the company missed out on an additional $$135$ million.

The Eventbrite IPO was underpriced by about $59$ percent. Should Everbrite be upset at Goldman Sachs and JP Morgan over the underpricing?

a$.$ It is clear that the stock was sold too cheaply, so Eventbrite had reason to be unhappy.

b$.$

financing.

QUESTION $45$

choice of issue methods. What is your recommendation and why?

a$.$

identified or well understood by researchers.

b$.$

factors that identify new methods that are well understood by researchers.