Question
Your investment bankers price your IPO at $15.00 per share for 10.0 million shares. If the price at the end of the first day of
Your investment bankers price your IPO at $15.00 per share for 10.0 million shares. If the price at the end of the first day of trading is $17.00 per share,
a. what was the percentage underpricing?
b. how much money did the firm miss out on due to underpricing?
a. what was the percentage underpricing?
As a percent of the offering price, the underpricing is ??%. (Round to one decimal place.)
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
