The transaction is called going public

Assignment Help Financial Management
Reference no: EM13879760

Which of the following statements is NOT CORRECT?

a. When stock in a closely held corporation is offered to the public for the first time, the transaction is called “going public,” and the market for such stock is called the new issue market.

b. It is possible for a firm to go public and yet not raise any additional new capital at the time.

c. When a corporation’s shares are owned by a few individuals and are not traded on public markets, we say that the firm is “closely, or privately, held."

d. Publicly owned companies have shares owned by investors who are not associated with management, and public companies must register with and report to a regulatory agency such as the SEC.

e. “Going public” establishes a firm's true intrinsic value, and it also insures that a highly liquid market will always exist for the firm’s shares.

Reference no: EM13879760

Questions Cloud

How are the firms financing their assets? : How are the firms financing their assets?
Treasury announces plans- bond prices and interest rates : Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates?
Describe why they are relevant across industries : Given the readings in Module 10 and 11, how should a Middle Eastern company evaluate the success of a strategic alliance? Identify relevant criteria and discuss your reasons for including them. Describe why they are relevant across industries, cul..
The risk per unit of return is measured by the : The risk per unit of return is measured by the
The transaction is called going public : When stock in a closely held corporation is offered to the public for the first time, the transaction is called “going public,” and the market for such stock is called the new issue market. It is possible for a firm to go public and yet not raise any..
How much initial capital will be required to start business : What will it cost you to produce and how much initial capital will be required to start the business? How long will it take you to break even?
Calculate the net present value with the wacc : Calculate the net present value (NPV) with the WACC
Compute dow''s basic and diluted earnings per share : In 2013, Merrill's net income was $630,000.
What would be net present value of refunding for bond issuer : Given the information given, what would be the Net Present Value of Refunding for the bond issuer? Show all your calculations. Should the firm proceed with refunding the bonds?

Reviews

Write a Review

Financial Management Questions & Answers

  Devise a benchmarking review for anthonys orchard

Devise a benchmarking review for Anthony's Orchard. To do this, discuss recommended strategies and measures that will be useful to measure progress towards the objective in your gap analysis.

  Find the future values of ordinary annuities

Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

  Analysts expect that the dividend will grow at a rate

NYC Inc. has a current dividend of $3.00 per share (D0 = $3.00). Analysts expect that the dividend will grow at a rate of 25 percent per year for the next three years, and thereafter it will grow at a constant rate of 10 percent per year. The company..

  Characteristic of price takers

Which of the following is not a characteristic of price takers?

  What is the total present value assuming opportunity cost

What is the total present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming an opportunity cost of 7 percent?

  Using the full initial margin

You short sell 500 shares of Yahoo stock at a price of $23 per share, using the full initial margin of 50%. After a surprisingly positive earnings announcement, the stock price rises to $31 per share. Your broker immediately gives you a margin call a..

  What are the depreciation amounts in year one and year eight

An injection molding machine can be purchased and installed for $90,000. It is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of the at the end of year eight. What are the depr..

  What is the lenders expected annual yield

A $150,000, 15-year, monthly payment mortgage loan carries an interest rate of 5.5%, plus three points. The points are financed. What is the lender’s expected annual yield if the loan is amortized over the full 15 years?

  What is the expected return on a portfolio

What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of .5, what are the portfolio weights? If a portfolio of the two assets has an expected return of 8 percent, what is it..

  Tackle the problem of nitrates in the water

Suppose El Centro California decides to tackle the problem of nitrates in the water. Nitrates are compounds derived from synthetic fertilizers that are not assimilated by plants and leached out into the underground water and affect the human health. ..

  How much would you be willing to pay for this security

Suppose that one year has elapsed, you have received the first payment of $600, and the market interset rate is still 5 percent. How much would another investor be willing to pay for your security?

  Examples of asset-backed securities

Two specific, real-world examples of asset-backed securities with appropriate maturities and how they compare to a Treasury security of the same maturity in terms of the spread over the Treasury yield

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd