Dusty Corporation Is Issuing an IPO with an Issue Price

Multiple Choice

Dusty Corporation is issuing an IPO with an issue price of $15 per share that is expected to raise about $100 million. Which of the following is likely to be true?

A) The price of the stock will be less than $15 at the close of the first trading day.
B) The cost of the IPO to Dusty will be about $7 million.
C) The stock will perform very well in the three to five years after the issue.
D) None of the above is likely to happen.