$2.25 Ipos and dividends
†A US firm wants to raise $15 million by selling 1 million shares at a net price of $15 a share. We know that some say that firms " leave the† money on the table" because of the phenomenon of underpricing.
a. Using the average amount of underpricing in US IPO's, how many fewer shares could it sell to raise thes funds if the firm received a net price per share equal to† the value of the shares at the end of first day of trading.
b.How many less shares could it sell if the IPO was occuring in Germany
c. How many less less shares could it sell if the IPO was occuring in Korea?
d. How many less shares† could it sell if the IPO was occuring in Canada
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- Posted on Aug 22, 2012 at 12:26:34PM