4. Immediately following the IPO the shares traded at $14.50.

a. At this price, what was the value of the whole company? Expressed in percent, by how much was the deal underpriced?

b. In dollars, how much did this underpricing cost existing shareholders?

c. Assuming that none of the owners purchased additional shares at the IPO, what fraction of the equity did Hannah own and what was it worth immediately following the IPO?

d. What was the company’s debt-equity ratio—the ratio of the book value of debt outstanding to the market value of equity—immediately following the IPO?