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Problem 6: Miscellaneous topics including IPO filing, IPO ac…

Problem 6: Miscellaneous topics including IPO filing, IPO activity and underpricing, risk-return relation, capital budgeting, and capital structure (19 points) b) The attached figure shows the average first-day return and the number of IPOs in Canada for each year from 1980 to 2024 (IPOs-Canada.pdf). The average first-day return is indicated by the green line (right y-axis), while the number of IPOs is displayed by the blue bars (left y-axis). How did the number of firms going public in Canada evolve over time? How did the underpricing evolve over time? Compared to other countries, are Canadian IPOs, on average, fairly priced? (4 points)

f) Single-choice question: If a project requires an initial…

f) Single-choice question: If a project requires an initial investment of $600,000 and is expected to generate cash flows of $150,000 per year for the first three years and $180,000 per year for years four and five, what is the payback period? Please select the correct solution. (1 point)

Problem 3 – Excel: Risk and return of stock portfolios (9 po…

Problem 3 – Excel: Risk and return of stock portfolios (9 points) Download the attached Excel file “Problem_3_Template.xslx” (Problem_3_Template-1.xlsx) and answer the questions stated in the Excel file. When you have completed your solutions, please upload the Excel file with your solutions to your e-exam using the name “StudentID_Problem_3.xslx” (e.g., “123456789_Problem_3.xlsx”). When you want to upload an updated version of your solutions, please add a version tag (e.g., “_v2”) at the end of the file name (e.g., “123456789_Problem_3_v2.xlsx”). This problem consists of two parts. Parts a) and b) yield 4 and 5 points, respectively.