Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / 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
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.
