Match Group went public in November 2015. The company sold 33,333,333 shares at $12 per share. The

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Match Group went public in November 2015. The company sold 33,333,333 shares at $12 per share. The underwriting spread was $0.66 a share, and the direct expenses were $0.21 a share.

a. What was the percentage underwriting spread?

b. How much did the company raise after all expenses?

c. On its first day of trading the stock closed at $14.74. Calculate the dollar cost of underpricing.

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Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 24, 2017 08:58 AM

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Fundamentals of Corporate Finance

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