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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Related Book For
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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