Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
On August 19, 2004, Google completed its IPO of 21
On August 19, 2004, Google completed its IPO of 21.5 million shares to the initial investors at $80 per share. The closing price of the stock that same day was $100.00. What was the dollar value of the underpricing associated with the Google IPO? (Round answer to 0 decimal places, e.g. 5,275.)
Total underpricing was $ ____________ Million
enter the total underpricing in millions of dollars rounded to 0 decimal places
Expert Solution
Computation of Dollar Value of Underpricing associated with the Google IPO:
Dollard Value of Underpricing = (Closing Price at the day of IPO - Issue Price) * Number of shares
= ($100 - $80) * 21.5 million shares
= $430 millions
So, Dollar Value of Underpricing associated with the Google IPO is $430 millions.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
