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Wallace Publishing recently completed its IPO. The stock was offered at a price of $ 14.00 per share for 10 million shares. In the first

Wallace Publishing recently completed its IPO. The stock was offered at a price of $ 14.00 per share for 10 million shares. In the first day of trading, the stock closed at $19 per share.

a) What was the initial return on Parker Round?

b) Who benefited from this underpricing? who lost and why?

C) how much money did the firm miss out on due to underpricing?

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