Questions from Corporate Finance

Q: The Zipcar IPO was underpriced by about 56 percent. Should Zipcar

The Zipcar IPO was underpriced by about 56 percent. Should Zipcar be upset at Goldman over the underpricing?

Q: In the previous question, how would it affect your thinking to

In the previous question, how would it affect your thinking to know that the company was incorporated about 10 years earlier, had only $186 million in revenues in 2010, and had never earned a profit?...

Q: In the previous two questions, how would it affect your thinking

In the previous two questions, how would it affect your thinking to know that in addition to the 9.68 million shares offered in the IPO, Zipcar had an additional 30 million shares outstanding? Of thos...

Q: For initial public offerings of common stock, 2017 was a slow

For initial public offerings of common stock, 2017 was a slow year, with about $24.53 billion raised by the process. Relatively few of the 108 firms involved paid cash dividends. Why do you think that...

Q: How do you think this tax law change affected ex-dividend

How do you think this tax law change affected ex-dividend stock prices?

Q: The following material represents the cover page and summary of the prospectus

The following material represents the cover page and summary of the prospectus for the initial public offering of the Pest Investigation Control Corporation (PICC), which is going public tomorrow with...

Q: An all-equity firm is considering the following projects:

An all-equity firm is considering the following projects: The T-bill rate is 4 percent, and the expected return on the market is 12 percent. a. Which projects have a higher expected return than the...

Q: How do you think this tax law change affected the relative attractiveness

How do you think this tax law change affected the relative attractiveness of stock repurchases compared to dividend payments?

Q: On Tuesday, December 5, Hometown Power Co.’s board

On Tuesday, December 5, Hometown Power Co.’s board of directors declares a dividend of 75 cents per share payable on Wednesday, January 17, to shareholders of record as of Wednesday, January 3. When i...

Q: If a U.S. company exports its goods to Japan

If a U.S. company exports its goods to Japan, how would it use a futures contract on Japanese yen to hedge its exchange rate risk? Would it buy or sell yen futures? In answering, assume that the excha...