Your investment bankers price your IPO at $15 per share for 10 million shares. If the price

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Your investment bankers price your IPO at $15 per share for 10 million shares. If the price at the end of the first day of trading is $17 per share,

a. What was the percentage return on the first day of trading?

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

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Fundamentals of Corporate Finance

ISBN: 978-0321818171

2nd Canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Jan 05, 2019 12:48 PM

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Your investment bankers price your IPO at $15 per share for 10 million shares. If the price

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Fundamentals of Corporate Finance

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