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A Company and Its Investment Bank Decide on the Price

Question 56

Multiple Choice

A company and its investment bank decide on the price and the number of shares that will be offered in the IPO:


A) based on the trading response for its IPO Pop.
B) by estimating the expected future cash flows.
C) by estimating the level of investor demand during the road show.
D) by comparing with competitors' market capitalizations.

Correct Answer:

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