IPO underpricing: When Geo Corp. went public in September 2008, the offer price was $19.00 per share and the closing price at the end of the first day was $24.70. The firm issued 4 million shares. What was the loss to the company due to underpricing?
A) $13.6 million
B) $20.83 million
C) $20.6 million
D) $22.8 million
Correct Answer:
Verified
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