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I need help with this question in one of my Corporate Finance Overview test. Thanks. Determining the correct offering price is the most difficult thing

I need help with this question in one of my Corporate Finance Overview test. Thanks.

Determining the correct offering price is the most difficult thing an underwriter must do for an IPO. If we look at the historical data of various IPOs's offering prices and closing prices, we find that most IPO's are

A. overpriced on average.

B. overpriced on average, but only if there was excitement preceding the IPO.

C. underpriced on average.

D. neither overpriced nor underpriced on average.

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