Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 23, Problem 11P
Summary Introduction
To determine: The winning auction offer price of an IPO.
Introduction: When a company sells its share publically in an open market for the first time, it is known as initial public offering (IPO).
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Students have asked these similar questions
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Number of Shares
Price ($)
14.40
14.20
14.00
13.80
13.60
13.40
13.20
160,000
220,000
520,000
1,300,000
1,260,000
880,000
420,000
Assuming Roundtree would like to sell 2.20 million shares in its IPO, what will be the winning auction offer price?
The price will be $per share. (Round to the nearest cent.)
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Number of Shares
120,000
200,000
560,000
1,200,000
1,240,000
800,000
400,000
Price
$14.60
14.40
14.20
14.00
13.80
13.60
13.40
Assuming Roundtree would like to sell 2.08 million shares in its IPO, what will the winning auction offer price be?
The price will be $
per share. (Round to two decimal places.)
Roundtree Software is going public using an auction IPO. The firm has received the following bids:
Price ($)
Number of Shares
15.00
100,000
14.80
220,000
14.60
500,000
14.40
1,000,000
14.20
1,250,000
14.00
840.000
480,000
13.80
Roundtree had previously believed it would issue 1,800,000 shares; however, if Roundtree decides to issue an extra 547,000 shares (for a total of 2,347,000 shares), how much total money will it raise?
Roundtree will raise a total amount of $ million. (Round to one decimal place.)
Chapter 23 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 23.1 - Prob. 1CCCh. 23.1 - Prob. 2CCCh. 23.2 - Prob. 1CCCh. 23.2 - Prob. 2CCCh. 23.3 - List and discuss four characteristics about IPOs...Ch. 23.3 - Prob. 2CCCh. 23.4 - Prob. 1CCCh. 23.4 - What is the average stock price reaction to an...Ch. 23 - Prob. 1PCh. 23 - What are the advantages and the disadvantages to a...
Ch. 23 - Prob. 3PCh. 23 - Suppose venture capital firm GSB partners raised...Ch. 23 - Prob. 5PCh. 23 - Prob. 6PCh. 23 - Prob. 7PCh. 23 - Prob. 8PCh. 23 - Prob. 9PCh. 23 - Prob. 10PCh. 23 - Prob. 11PCh. 23 - Prob. 12PCh. 23 - What is IPO underpricing? If you decide to try to...Ch. 23 - Prob. 14PCh. 23 - Prob. 15PCh. 23 - Prob. 16PCh. 23 - Prob. 17PCh. 23 - Prob. 18PCh. 23 - Prob. 19PCh. 23 - Prob. 20P
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- Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 14.00 160,000 13.80 220,000 13.60 560,000 13.40 1,100,000 13.20 1,250,000 13.00 800,000 12.80 480,000 Roundtree had previously believed it would issue 2,000,000 shares; however, if Roundtree decides to issue an extr 547,000 shares (for a total of 2,547,000 shares), how much total money will it raise? ... Roundtree will raise a total amount of $ million. (Round to one decimal place.)arrow_forwardM106.arrow_forwardYou would like to buy shares of International Business Machines (IBM). The current bid and ask quotes are $103.25 and $103.30, respectively. You place a market buy-order for 200 shares that executes at these quoted prices. How much money did it cost to buy these shares?arrow_forward
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