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5. Company is going public w 31000 shares. Investment bank sells 21000 at $36 with a 9% spread. On the secondary market the stock sells
5. Company is going public w 31000 shares. Investment bank sells 21000 at $36 with a 9% spread. On the secondary market the stock sells for $42. How much money did the company leave on the table on the initial offering? Look up underpricing. (p1-po)*(# of shares) and (p1-Po)/po
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