Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 15.5, Problem 15.5ACQ
Summary Introduction

To think critically about: The reason for considering underpricing as a cost to the firm that issues securities.

Introduction:

The aggregation of the sellers and buyers of the stocks that represents the ownership claims of their business is a stock market that is also referred as the equity market. The stock market also includes the securities that are listed in the public stock exchanges. The sale of the stocks below the true value is the underpricing.

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Relevant Costing Explained; Author: Kaplan UK;https://www.youtube.com/watch?v=hnsh3hlJAkI;License: Standard Youtube License