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Wallace Publishing recently completed its IPO. The stock was offered at $14.15 per share. On the first day of trading, the stock closed at $19.19

Wallace Publishing recently completed its IPO. The stock was offered at $14.15per share. On the first day of trading, the stock closed at $19.19per share.

a.What was the initial return on Wallace?

b.Who benefited from thisunderpricing? Wholost, andwhy?

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