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bazaltina [42]
3 years ago
8

IPOs are associated with several puzzles: IPOs are underpriced on average; new issues are highly cyclical; transaction costs of

IPOs are high and long-term performance of IPOs is poor on average.
Why many firms are still choosing to go for an IPO (give at least three possible reasons supporting your answer)?

Why investors choose to buy stocks of IPO firms?
Business
1 answer:
goblinko [34]3 years ago
5 0

Answer:

Explanation:

Firms still choose to go for an IPO for the following reasons;

1. Majorly, it is a means of generating revenue. Revenue is generated when stocks are sold to the public.

2. It is also a means of reducing risk, The cost of running the business is spread across many investors, so is the risk.

3. There is reduction of the overall cost of capital and gives the company a more solid standing when negotiating interest rates with banks.

4. Companies can easily offer up stocks instead of cash in the acquisition of other companies or in the case of mergers.

5. Having stocks listed on NSE is a means of public exposure

Investors choose to buy stocks of IPO firms because the initial offering is usually at a low rate since the firm is still small and relatively unknown. This stocks bought at a cheap rates have the chance of rising thus generating gains for the investors.

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Kent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The D
Burka [1]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

As per §117(b)(2) a qualified scholarship that is solely used for qualified tuition and related expenses like fees, books and supplies that is necessary for such course in which admission is taken, related tuition fees and associated expenses are not taxable.

On the other side expenses on rooms and boarding are not qualified expenses so any amount spent on it is fully taxable. Another condition is that scholarship given should not be an exchange of service.

<em>You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  </em>

<em />

<em />

Download xlsx
6 0
3 years ago
ABC Corporation, after many profitable years, declares a one-time special cash dividend of $10.00 per share. After the announcem
Crank

Answer:

1 ABC Jan 100 Call

Explanation:

Although the OCC does not usually adjust the strike price of listed options for regular quarterly cash dividends. This is because they are known quantity that are segmented by the market into options premium.

For special cash dividends, they are not a frequent event hence market does not recognize them. This special cash dividend is $10 per share × 100 shares = $1,000 value per contract. It therefore means that the $1,000 value per contract will be adjusted.

The new strike price will be

= 110 - 10 cash dividend

= 100. It also means that the number of shares covered by the contract does not change.

4 0
3 years ago
How can we build up strong analytical skill discuss​
yan [13]

Answer:

hope help you

Explanation:

Here are several ways you can improve your analytical skills:

Read more. An important part of being analytical involves being alert and remaining stimulated. ...

Build your mathematical skills. ...

Play brain games. ...

Learn something new. ...

Be more observant. ...

Join a debate club. ...

Take an exercise class. ...

Keep a journal.

4 0
2 years ago
A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's p
jeyben [28]

Answer: Her actions are inconsistent with the advice being given to her clients and this must be disclosed

Explanation:

Since the registered investment adviser often recommends real estate limited partnership investments to her wealthy clients but she never buys limited partnership units for her personal account.

This shows that her actions are inconsistent with the advice being given to her clients and this must be disclosed.

5 0
2 years ago
hen calculating the cost of direct materials on the schedule of cost of goods manufactured, the cost of indirect materials is __
Kisachek [45]

It should be noted that When calculating the cost of direct materials on the Schedule of Costs of Goods Manufactured,

The  cost of indirect materials must be Subtracted from raw materials used in production.

<h3>What are Direct material costs ?</h3>

Direct material costs  can be regarded as those cost of the raw materials as well as those components used in making the product.

Therefore, the cost of indirect material is required to be Subtracted from raw materials used in production.

learn more about Direct material cost at:

brainly.com/question/25790358

7 0
2 years ago
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