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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?

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