Question

On April​ 27, 2018,​ DocuSign, a California company that provides technology to enable digital signatures on important​ documents, conducted its initial public offering​ (IPO) of common stock. In the primary trading market the​ company's shares were priced at

​$27.65

per​ share, but after one day of trading on​ Nasdaq, the share price closed at

​$39.91.

The company sold

21.4

million shares in the offering.

a. To what extent​ (in dollars and on a percentage​ basis) was​ DocuSign's stock underpriced in its​ IPO?

b. How much cash​ (before deducting fees to investment​ banks) did DocuSign​ raise? How much more would it have raised if the shares had not been​ underpriced?

a. ​DocuSign's stock was underpriced on its IPO by

​$nothing.

​(Round to the nearest​ cent.)​DocuSign's stock was underpriced on its IPO by

nothing​%.

​(Enter as a percentage and round to the nearest whole​ percent.)b. The amount of cash raised by DocuSign was

​$nothing.

​(Round to the nearest​ dollar.)The amount of cash they could have raised if the IPO was not underpriced is

​$nothing.

​(Round to the nearest​ dollar.)If the IPO was not​ underpriced, they could have raised

​$nothing

more.  ​(Round to the nearest​ dollar.)

Answer 1

Answer:

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