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.
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Answer:
b. increase his consumption of Y.
Explanation:
A normal good is a good whose demand increases when income rises and falls when income falls.
If good Y is a normal good, Prince would increases its consumption when income rises.
I hope my answer helps you
Answer: The answer is True.
Explanation: The Buyer Decision process has 5 phases and they are as follows:
1. Need recognition phase, where the buyer recognizes that they have a need to fill.
2. Information search phase, where the buyer seeks information on the best options to meet their needs.
3. Alternative evaluation phase, where a buyer evaluates the alternative enterprises that can best meet their needs.
4. The purchasing phase, where a buyer makes the decision to purchase the product or service of the best alternative, based on the evaluation in phase 3.
5. Post-purchase behavior phase where the buyer will either be happy with the product or service or will regret buying the product or service. Often, the buyer will advice other people to either buy or avoid buying that product or service, based on their experience.
Answer:
$380,000
Explanation:
Particulars Product 1 (Amount)
Sales $1,400,000
(-) Direct materials ($200,000)
(-) Direct labor ($600,000)
<u>(-) Manufacturing overhead
</u>
Batch level ($400,000*20/80) ($100,000)
Product line level ($600,000*10/50) <u>($120,000)</u>
Gross margin <u>$380,000</u>
So, Dakota Company's gross margin for Product 1 using activity based costing is $380,000
Presto will record the acquisition cost of the equipment as $22,250 (21,500+430+320) which is the total cost for making the fixed asset ready for operation. The Generally accepted accounting principle requires a company to record all of the acquisition cost of a fixed asset. Thus, Presto company must capitalize all cost related to the fixed asset.
