When ABC Company went public in September 2008, the offer price was $4.42 per share and the closing price at the end of the first day was $6.92. The company issued 5 million shares. What was the loss to the company due to under-pricing? (in millions of dollars to the nearest two decimal places; don’t use $ sign eg $4.5766 million is 4.58)
We see that the loss due to the underpricing=Number of shares*(Closing price at the end of the first day-Offer price)=5*(6.92-4.42)=12.50000 million
When ABC Company went public in September 2008, the offer price was $4.42 per share and the closing price at the end of...
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