You work in the Initial Public Offering department of a major investment bank. At which level would you recommend we price new shares to be issued of an electric vehicle firm that is selling 60%?

a. At $18/share; we believe we will have from our investor clients 7x times as many orders as shares available. The Stock price is sure to pop huge once issued, so current owners and our investor clients will be very happy.

b. At $38/share; we believe we will have from our investor clients 1.2x times as many orders as shares available. The Stock price should start trading on or slightly above that price once issued, so current owners and our investor clients should be happy.

c. At $58/share; we believe we will not have from our investor clients enough orders as shares available, but that is ok. We will find other Investment Banks to take the rest and maximize the amount of dollars raised by the vehicle maker.

d. At $118/share, we should raise as much money as possible, always.