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  3. 2) which of the following statements is false? a)

2) Which of the following statements is false? a) On average, IPOs are underpriced, meaning...

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Finance

2) Which of the following statements is false?

a) On average, IPOs are underpriced, meaning the stock price drops under the initial subscription price on the first day of trading.

b) The median spread received by the underwriter for an IPO is 7% of the proceeds.

c) One of the problems with the payback period as a decision rule is that it ignores the time value of money.

d) Investment grade bonds have higher (better) credit ratings than junk bonds.

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