Saturday
April 19, 2014

Homework Help: finance

Posted by MK on Sunday, May 5, 2013 at 12:14pm.

11-10. A U.S. firm wants to raise $15 million by selling 1 million shares
at a net price of $15. We know that some say that firms “leave
money on the table” because of the phenomenon of underpricing.
a. Using the average amount of underpricing in U.S. IPOs, how
many fewer shares could it sell to raise these funds if the firm
received a net price per share equal to the value of the shares
at the end of the first day’s trading?

b. How many less shares could it sell if the IPO was occurring in
Germany?

c. How many less shares could it sell if the IPO was occurring in
Korea?

d. How many less shares could it sell if the IPO was occurring in
Canada?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - A U.S. Firm wants to raise $10 million of capital so it can invest in ...
Finance - A U.S. firm wants to raise $15 million by selling 1 million shares at ...
Corporate Finance - By how much must a firm reduce its assets in order to ...
Corporate Finance - A project cost $1 million and has a base-case NPV of exactly...
Finance - Suppose a new company decides to raise a total of $200 million, with $...
Finance - You initially contributed $200,000 of your own money and in return you...
Finance - Consider a firm that has decided to make, but has not yet announced, a...
finance - 2. ABC Inc. is a levered company. The firm has $50 million bonds ...
Algebra - The function w(x) = – 0.01x^2 + 0.27x + 8.60 can be used to estimate ...
Finance - A firm has debt with a market value of $40 million and an equity value...

Search
Members