1. Cash offers Suppose that instead of having a rights issue of new stock at 64, Pandora decided to make a general cash offer at €4.
Would existin shareholderi still be just
2. IPOs Refer to the Marvin Prospectus Appendix at the end of this chapter to answer- the following questions.
a. If there is unexpectedly heavy demand for the issue, how many extra shares can the underwriter buy?
b. How many shares are to be sold in the primary offering? How many will be sold in the secondary offering?
c. One day post-IPO, Marvin shams traded at $105. What was thedegree of underpricing? How does that compare with the average degree of underpricing for 1POs in the United States?
There are three kinds of cost to Marvin's new issue-underwriting expense, administra¬tive costs, and under rici What was the total dollar cos e Marvin
IPOs Find the prospectus for a recent IPO. How do the issue costs compare with (a) those the Marvin issue and (b) those shown in Table 15.3? Can you suggest reasons for the differences?
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