Question
You are negotiating with your underwriters in a firm commitment offering of 8 million primary shares. You have two options: set the IPO price at
You are negotiating with your underwriters in a firm commitment offering of 8 million primary shares. You have two options: set the IPO price at $23.00 per share with a spread of 6%, or set the price at $22.50 per share with a spread of 4%.
Which option raises more money for your firm?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
