What was the degree of underpricing


Refer to Marvin Prospectus Appendix

1) If there is unexpectedly heavy demand for this issue, how many extra shares can the underwriter buy?

2) How many shares are to be sold in the primary offering? How many will be sold in the secondary offering?

3) One day post-ISO, Marvin shares trades at $105. What was the degree of underpricing? How does that compare with the average degree of underpricing for IPOs in the United States?

4) There are three kinds of cost to Marvin's new issue- underwriting expense, administrative costs, and underpricing. What was the total dollar cost of the Marvin issue?

Please show how to calculate this.

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