Loss to the company due to underpricing


Problem:

When Global Partners went public in September 2008, the offer price was $22.00 per share and the closing price at the end of the first day was $24.40. The firm issued 5.20 million shares.

Required:

Question: What was the loss to the company due to underpricing?

Note: Please answer in proper manner and show all computations

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Accounting Basics: Loss to the company due to underpricing
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