Margles Publishing recently completed its IPO. The stock was offered at ($14) per share. On the first

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Margóles Publishing recently completed its IPO. The stock was offered at $$14$ per share. On the first day of trading, the stock closed at $$19$ per share.

a. What was the initial return on Margóles?

b. Who benefited from this underpricing? Who lost, and why?

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Corporate Finance

ISBN: 9780273792024

3rd Global Edition

Authors: Peter Demarzo, Jonathan Berk

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Question Posted: Jun 12, 2024 01:04 AM

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Margles Publishing recently completed its IPO. The stock was offered at ($14) per share. On the first

Question:

Step by Step Answer:

Corporate Finance

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