
To explain: The suggestion of the employees.
Initial Public Offering:
The initial public offering refers to the shares or the stock which are offered by a company to the public for the first time. This is done by following lots of regulations and is generally done to raise the funds of a company.
Under pricing:
The under pricing term refers to the offering of the stocks or the bond at a low price than before. The stocks or the debt are said to be underpriced when they are traded at a lower price than on which were issued first for trade.
Dutch Initial Public Offering:
This is a kind of offering auction where all the bids are considered first and then an offering price is fixed. The highest price is determined in this way and the offer is finally sold at the highest possible price.

Want to see the full answer?
Check out a sample textbook solution
Chapter 20 Solutions
Corporate Finance
- You are called in as a financial analyst to appraise the bonds of Ollie’s Walking Stick Stores. The $5,000 par value bonds have a quoted annual interest rate of 8 percent, which is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 12 years to maturity. a. Compute the price of the bonds based on semiannual analysis. b. With 8 years to maturity, if yield to maturity goes down substantially to 6 percent, what will be the new price of the bonds?arrow_forwardLonnie is considering an investment in the Cat Food Industries. The $10,000 par value bonds have a quoted annual interest rate of 12 percent and the interest is paid semiannually. The yield to maturity on the bonds is 14 percent annual interest. There are seven years to maturity. Compute the price of the bonds based on semiannual analysis.arrow_forwardNeed solution this wuarrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College

