Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months,my investment record is as follows:IPOABCDSharesAllocatedto Me5002001,0000Average underpricingPrice perShare$1020812a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to2 decimal places.)Average initial returnInitialReturn7%12223b. What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating thisaverage initial return, remember to weight by the amount of money invested in each issue. (Do not round intermediate calculations.Enter your answer as a percent rounded to 1 decimal place.)%

The "initial return" means the profit or return that investors might expect to get soon after taking…

Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, ny investment record is as follows: IPO A B C D Shares Allocated to Me 500 200 1,000 Average underpricing Price per Share $10 20 8 12 Average initial return . What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to e decimal places.) Initial Return 7% 12 - 2 23 . What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating this verage initial return, remember to weight by the amount of money invested in each issue. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) %

Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, ny investment record is as follows: IPO A B C D Shares Allocated to Me 500 200 1,000 Average underpricing Price per Share $10 20 8 12 Average initial return . What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to e decimal places.) Initial Return 7% 12 - 2 23 . What is the average initial return on my "portfolio" of shares purchased from the four IPOs that I bid on? When calculating this verage initial return, remember to weight by the amount of money invested in each issue. (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) %

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 4TP: On November 7, 2013, Twitter released its initial public offering (IPO) priced at $26 per share....

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Having heard about IPO underpricing, I put in an order to my broker for 1,000 shares of every IPO he can get for me. After 3 months, my investment record is as follows: IPO A B С Shares Allocated to Me 580 200 1,000 Price per Share $10 20 8 12 Initial Return 7% 12 - 2 23 a. What is the average underpricing in dollars of this sample of IPOs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Average underpricing 0.10
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