One of the theories regarding initial public offering (IPO) pricing is that the initial returny (the percentage change f

[answerhappygod]

One Of The Theories Regarding Initial Public Offering Ipo Pricing Is That The Initial Returny The Percentage Change F 1 (23.07 KiB) Viewed 38 times

One Of The Theories Regarding Initial Public Offering Ipo Pricing Is That The Initial Returny The Percentage Change F 2 (22.34 KiB) Viewed 38 times

One Of The Theories Regarding Initial Public Offering Ipo Pricing Is That The Initial Returny The Percentage Change F 3 (26.2 KiB) Viewed 38 times

One of the theories regarding initial public offering (IPO) pricing is that the initial returny (the percentage change from offer to open price) on an IPO depends on the price revision (the percentage change from pre-offer to offer price) Another factor that may influence the initial retum is a high-tech dummy variable that equals 1 for high-tech firms and otherwise. The following table shows a portion of the data on 264 IPO firms from January 2001 through September 2004 Thita le hesh 36.95 7.34 10.51 -32.50 2.37 -21.34 Dnicture. Click here for the Excel Data File --1. Estimate y - 60+ 0x0yd + where the dummy variable dequals 1 for fures that are high tech (Round your answers to 2 decimal places.) Instal Return Price Revision High Tech 0-2 Use the estimated model to predict the initial return of a high tech firm with a 10% price revision (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places) Predicadutin o hightech

Predicted return of a high tech firm 0-3. Find the corresponding predicted return of a firm that is not high-tech (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places) Predicted return of a non hightech firm b-1. Estimate y = 0 + 0px + 6yd te where the dummy variable de quals 1 forfitms that are not high-tech (Negative values should be indicated by a minus sign. Round your answers to 2 decimal place.) Price Revision High Tech b.2. Use the estimated model to predict the initial return of a high tech firm with a 10% price revision (Round coefficient estimates to ot least a decimal places and final answer to 2 decimal places.) Inibal Return Predided the insum of a Woh toch

b-3. Find the corresponding predicted return of a firm that is not high-tech (Round coefficient estimates to at least 4 decimal places and final answer to 2 decimal places.) Prodidied telum ola non lightech Tim c-1. In the high-tech models, determine if the dummy variable is significant at the 5% level The dummy variable is significant since the p-value is less than 0.05 The dumny variable is not significant since the p value is more than 0.05. The dummy variable is significant since the p-value is more than 0.05 The dummy variable not significant since the pvalue is less than 0.05 c-2. In the not high tech models determine if the dummy variable is significant at the 5% level O the dummy vanable is slonificant since the p value is less than 0.05 The dummy variable is not significant since the polue is more than 0.05 The dummy variable is significant since the p value is more than 0.05 The dummy variable is not significant since the p value is less than 005