Why are you most concerned about determining the correct offering price of the IPO for your company?

A) If the issue is priced too high, it may be unsuccessful and have to be withdrawn.

B) The underwriter will only make money if the offering price is above the average of all market prices offered on the initial day of offering.

C) If the issue is priced below the true market value, the issuers existing shareholders will experience an opportunity loss when they sell their shares for less than they are worth.

D) All of the above.

E) Only a. and c. above.