Firm issues securities to the public
Problem:
When a firm issues securities to the public for the very first time, these are generally under-priced. Explain why.
Note: Provide correct solution of the given problem with step by step calculations.
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Which element should NOT be taken into account when determining the net present value of a series of cash flows?
When a firm issues securities to the public for the very first time, these are generally under-priced. Explain why. Note: Provide correct solution of the given problem with step by step calculations.
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