Who bears the bulk of the cost of underpricing an IPO?

a. The underwriters

b. The pre-IPO shareholders

c. The investors who purchase IPO shares

d. The management

e. All of the above

The most appropriate valuation technique for start-up companies without a stable capital structure is:

a. Free Cash Flow to Firm

b. Dividend Discount Model

c. Black-Scholes Option Pricing Model

d. Capital Asset Pricing Model

e. Free Cash Flow to Equity