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Bavaria Brew Bavaria Brew is planning an IPO. Under the terms of the IPO, Bavaria Brew will issue 8 million shares at an offer price
Bavaria Brew
Bavaria Brew is planning an IPO. Under the terms of the IPO, Bavaria Brew will issue 8 million shares at an offer price of $35 per share. The underwriter charges an 10% underwriting fee and direct costs are estimated to be $7 million. The stock is expected to trade at $42 at the end of the first trading day.
11. What is the initial return earned by investors on the Bavaria Brew IPO?
a. | 20% |
b. | 15% |
c. | 17% |
d. | 22% |
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