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aniked [119]
2 years ago
14

A company is about to go public with an ipo loading. (initial public offering) and the company founders keep a significant porti

on of the company's stock. this is an example of:____.
Business
1 answer:
gavmur [86]2 years ago
7 0

A company is about to go public with an IPO ​(initial public​ offering) and the company founders keep a significant portion of the​ company's stock. This is an example of signaling.

A public offering in which shares of a firm are sold to institutional investors and typically also to retail investors is known as an initial public offering (IPO) or stock launch. Typically, one or more investment banks will underwrite an IPO and coordinate the shares' listing on one or more stock exchanges.

Underpricing in the IPO market as a signal Investors are aware that only the best can recover the cost of this signal from later issues, which is why some organizations with the best prospects decide it is preferable to indicate their type by underpricing their initial issue of shares.

IPOs assist businesses in raising capital without turning to banks or other financial institutions, which could impose exorbitant interest rates on loans. Additionally, it enables current investors to exit the business without paying capital gains tax.

To know more about initial public​ offering refer to:  brainly.com/question/3068229

#SPJ4

You might be interested in
Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expect
raketka [301]

Answer: $400.56

Explanation:

Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)

Tax shield in year 3 = Interest expense * tax rate

= 140 * 25%

= $35

Horizon value = 35 * ( 1 + 3%) / (12% - 3%)

= $400.56

6 0
3 years ago
Suppose that short-term municipal bonds currently offer yields of 4%, while comparable taxable bonds pay 5%. Whichgives you the
Hatshy [7]

Answer:

a. 5.00%

b. 4.50%

c. 4.00%

d. 3.50%

Explanation:

The after tax yield is determined by the formula given below;

Equivalent Taxable Yield = r * (1 - t)

a. when t = 0 then 5% * (1 - 0)

= 5.00%

When t=0, the after tax yield for taxable bond is same as before tax yield and is greater than municipal bond.

b. when t = 10% then 5% * (1 - 10%)

= 4.50%

c. when t = 20% then 5% * (1 - 20%)

= 4.00%

d. when t = 30% then 5% * (1 - 30%)

= 3.50%

6 0
4 years ago
If the exchange rate for buying Japanese Yen is 12 Yens per Dollar, how many
GuDViN [60]

Answer:

2,400 Yens

Explanation:

exchange rate for buying Japanese Yen is 12 Yens per Dollar

1 dollar : 12 Yens

how many Yens do you need to buy 200 Dollars for?

Let

x = number of Yens needed

200 dollars : x Yens

Equate the ratios to find x

1 dollar : 12 Yens = 200 dollars : x Yens

1/12 = 200/x

Cross product

1 * x = 12 * 200

x = 2,400

x = number of Yens needed = 2,400 Yens

7 0
3 years ago
Peter temporarily takes over Thomas job in his absence,what does this move represent? (10 marks)
Ratling [72]

Answer:

A job substitution

Explanation:

A substitute is a person who takes over a job or position from another for a shorter period of time in his absence. The term is known from substitute teachers in the school, but also from substitute priests and substitute doctors who may be subordinate officials who temporarily take over for the superior.

Today, most temporary workers are used in industry and building/construction, where they give companies the opportunity for a faster adaptation to market conditions and thus help to strengthen the competitiveness of the business community.

7 0
3 years ago
g a machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. the amount that should be
krek1111 [17]

In a condition wherein a machine costing $148,000 and accumulates depreciation of $103,000 is sold for $59,000 cash, then the amount that should be reported as a source of cash under the cash flows from investing activities will be $59,000. Therefore, the option C holds true.

Cash flows from investing activities include the amount(s) spent by an organization over investing in different classes of assets with a view to pursue monetary returns. They include the amounts that are received or sent as cash at the time of purchase or sales of an asset of an organization.

Learn more about cash flows here:

brainly.com/question/15021405

#SPJ4

Complete question

g a machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. the amount that should be reported as a source of cash under cash flows from investing activities is:

a. Zero.

b. This is a financing activity.

c. $59,000.

d. $14,000.

e. This is an operating activity.

f. $45,000.

5 0
1 year ago
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