Question
5) AlphaBeta went public recently and used the Dutch auction to set the offer price for 50 million shares. The following table gives the bidding.
5) AlphaBeta went public recently and used the Dutch auction to set the offer price for 50 million shares. The following table gives the bidding. The stock traded at $34 at the end of trading on the first day.What is the percent underpricing?
| Bidder | Price ($) | Number of Shares (millions) |
| B1 | 32 | 10 |
| B2 | 30 | 20 |
| B3 | 25 | 25 |
| B4 | 18 | 50 |
| a.6.25% |
| b.13.3% |
| c.26.5% |
| d.36.0% |
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
