Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Four companies performed IPOs last month: Hot.Com, Biotech Pipe Dreams Corp., Sleepy Tyme Inc., and Bricks N Mortar International. All four companies went public at the offer price of $10 per share. First day performance of each stock(measured as the percentage difference between IPO offer price and first day closing price) given below:

Company First Day Return
Hot.Com 45%
Biotech Pipe Dreams 30%
Sleepy Tyme 5%
Bricks N Mortar 0%

a. You submit bid through you broker for 100 shares of each company. Your orders were filled totally, and you cashed out of each deal after one day. Determine average return on these investments?

b. Next assume your orders were not all filled totally as of excess demand for "hot" IPOs. After ordering 100 shares of each company, you were able to purchase only 10 shares of Hot.Com, 20 shares of Biotech Pipe Dreams, 50 shares of Sleepy Tyme, and 100 shares of Bricks N Mortar. Recompute your average return, taking into account your orders were only partly filled.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M936872

Have any Question? 


Related Questions in Business Management

Discuss how your organization and you as an individual have

Discuss how your organization and you as an individual have benefited from the Internet. Think beyond the terms that it helps you communicate. If you think it helps you communicate, then how does this communication help ...

Analyze the balanced scorecard approach as it applies to

Analyze the balanced scorecard approach as it applies to human resource projects. What differences are clear in this analysis? Prioritize the elements of finishing a human resource project. Define your critical path of t ...

1alia a graphic artist at an advertising firm realizes that

1. Alia, a graphic artist at an advertising firm, realizes that the head designer, Ryan, has been copying designs from the Internet and passing them off as his own. Alia informs the marketing head about this, which leads ...

Using any of the recognized search engines such as yahoo or

Using any of the recognized search engines such as Yahoo or Google, find information on international franchising opportunities. Once you have found a franchising opportunity, collect data (franchise fees, working capita ...

Enterprise architecture is represented by mit cisr as the

Enterprise Architecture is represented by MIT CISR as "the arranging rationale for IT abilities and business procedure mirroring the institutionalization and coordination prerequisites of the working model of organizatio ...

In this exercise you will use database software to develop

In this exercise, you will use database software to develop an application that tracks customer service requests and analyzes customer data to identify customers meriting priority treatment. Prime Service is a large serv ...

Write a five page double-spaced essay addressing the case

Write a five page double-spaced essay addressing the case below. This case has three parts: A, B, and C. Your paper should begin by addressing Parts A and B, which go together. Next address Part C. When answering questio ...

Why is the rate of growth the central driver of the

Why is the rate of growth, the central driver of the organizational challenges, a growing venture faces?

Class one of the controversial provisions of williams

Class, one of the controversial provisions of Williams decision was the notion that one of the major life functions must be impaired. This leads to follow up questions of whether or not medical interventions (eye glasses ...

Topic 1 the letter offerthe core corporation is in

Topic 1: The Letter Offer? The Core Corporation is in negotiations with the Zlow Glow Corporation regarding a licensing agreement. The Core Corporation sent the following letter to the ZlowGlow Corporation Dear ZlowGlow ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate