How would you determine the offering price of an ipo

Assignment Help Corporate Finance

Reference no: EM131328374

1. If you were an investment banker, how would you determine the offering price of an IPO?

2. Are the significantly positive short-run returns and the significantly negative long-run returns, earned by IPO shareholders, compatible with market efficiency? If not, why not?

Reference no: EM131328374

Questions Cloud

Define the term financial intermediary : Define the term "financial intermediary." What role do financial intermediaries play in U.S. corporate finance? How does this compare with the role of non-U.S. financial intermediaries?

Differentiate between us commercial bank and merchant bank : Differentiate between a U.S. commercial bank and the merchant banks found in other developed countries. How have these differences affected the securities markets in the United States versus those in other developed countries?

Distinguish between eurobond foreign bond and yankee band : Distinguish between a Eurobond, a foreign bond, and a Yankee bond. Which of these three represents the greatest volume of security issuance?

Investment opportunity of lifetime : Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in mortgage backed securities. The broker explains that these securities are entitled to the principal and interest payments received from a pool of residen..

How would you determine the offering price of an ipo : Are the significantly positive short-run returns and the significantly negative long-run returns, earned by IPO shareholders, compatible with market efficiency? If not, why not?

Describe key services that investment banks provide to firms : List and briefly describe the key services that investment banks provide to firms which are issuing securities, before, during, and after the offering.

Which type of placement is usually preferred by issuing firm : Discuss the various issues that must be considered in selecting an investment banker for an IPO. Which type of placement is usually preferred by the issuing firm?

Create an argument supporting that using valuation method : Acc 573- Create an argument supporting that using the market-based valuation method yields the most accurate results. Provide support for your argument.

User Account

All Pages