EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103145947
Author: DeMarzo
Publisher: PEARSON
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Chapter 23.2, Problem 2CC
Summary Introduction

To determine: The mechanics of an auction IPO.

Introduction: Initial Public Offering (IPO) is a process where a company sells its share publically on the open market for the first time.

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D. (1) Consider the following cash inflows of a financial product. Given that the market interest rate is 12%, what price would you pay for these cash flows? Year 0 1 2 3 4 Cash Flow 160 170 180 230
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