The CDE Corporation decides to go public. Based on the price discovery through the road show, CDE and their investment bank decide on an offer price of $22.50 for the IPO. At the close of trading on the IPO date, the stock price for shares of CDE is $31.25. To what degree were the shares underpriced?

Select one:

a. Less than 10%

b. Between 10% and 25%

c. Between 25% and 35%

d. Greater than 35%

e. The shares were not underpriced as the company received the amount that they were promised for the sale of the stock