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Please show your work I am lost and need help, if you can show me how to do this that would be extremely helpful. IPO

Please show your work I am lost and need help, if you can show me how to do this that would be extremely helpful.

  1. IPO (Slide 9) (see the attached excel file) -- Complete the answers to (a) (b) (c) (d) (e) for the following IPOs:

Name

TWITTER INC

UBER TECHNOLOGIES INC

SNOWFLAKE INC-CLASS A

DOORDASH INC - A

Ticker

TWTR US Equity

UBER US Equity

SNOW US Equity

DASH US Equity

IPO Date

11/7/2013

5/10/2019

9/16/2020

12/9/2020

No. of IPO Shares Offered (in Millions)

70.00

180.00

28.00

33.00

IPO Offering Price

$26.00

$45.00

$120.00

$102.00

First Day Open Price

$45.10

$42.00

$253.93

$182.00

First Day Closing Price

$44.90

$41.57

$245.00

$189.51

Last Price (as of 02/09/2021)

$59.87

$59.61

$314.29

$188.00

(a) IPO Proceeds (offer amount in million USD)

(b) Amount of Money Left on the Table (in million USD)

(c) IPO Underpricing: First Day Return from IPO Offering Price to first day Closing Price

(d) Return from IPO Offer Price to Last Price (as of 02/09/2021)

(e) Return from IPO first day closing price to last price (as of 02/09/2021)

Should show the calculations step-by-step or in excel formulas.

  1. Margin Trading (slide 27)

An investor opens her first brokerage account, and purchases 500 shares of a stock at $50 per share. She borrows $12,000 from her broker to help pay for the purchase. The interest rate of the loan is 8%.

  1. What is the initial margin in her account when she first purchases the stock?

  1. If the price falls to $42 per share by the end of the quarter, what is the remaining margin in her account? If the maintenance margin requirement is 35%, will she receive a margin call?

  1. What is the rate of return on the investment if she sells the shares at the end of the quarter at $42 per share?

  1. Short Sales (slide 32)

You sold short 200 shares of a stock at $125 per share. The initial margin is 50%.

  1. At what stock price would you receive a margin call if the maintenance margin is 30%? (do not consider dividends in question a)

  1. Assume that the stock paid a $0.40 dividend per share each quarter, what is the rate of return if you buy to cover the shares at $110 per share at the end of the year?

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