l. At what price do you think Edelmans shares should be offered to the public? You will

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l. At what price do you think Edelman’s shares should be offered to the public?

You will want to select a price that will be low enough to induce investors to buy the stock but not so low that it will rise sharply immediately after it is issued.

Think about relative growth rates, ROEs, dividend yields, and total returns

(rs = D1/P0 + g).

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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