Answer Posted / bhupender janmejai
Historically, some of IPOs both globally
and in the United States have been underpriced.
The effect of "initial underpricing" an IPO
is to generate additional interest in the
stock when it first becomes publicly traded.
Through flipping, this can lead to
significant gains for investors who have
been allocated shares of the IPO at the
offering price. However, underpricing an
IPO results in "money left on the table"—lost
capital that could have been raised for
the company had the stock been offered
at a higher price.
| Is This Answer Correct ? | 39 Yes | 4 No |
Post New Answer View All Answers
what is subscription order
what is valuation code and valuation modifier in sap fico
What is entry of Dishonored cheque issued to supplier
You are using the accounts approach to parallel valuation and classic assets accounting. You need to create a new financial statement version to valuation based of IFRS principles. In asset accounting, what posting options can you choose for the new depreciation area? (any 2 answer) Area post in real time Area posts APC directly and depreciation periodically Area posts APC only directly Area posts APC and depreciation periodically
Let me know the liability positions of Partners
What is absorption costing with defination? and what is marginal costin with defination?
Were i have to enter for agreements in tally and in which ledger it will come
kindly send the TDS tariff on Security expenses, rents, transport charges etc.,
our cheque to Arshad Khan was dishonored?
Can a firm claim preliminary expenses incurred(manufacturing) or only its is applicable to Companies? can a firm claim ,1/5 of such expenses incurred as deduction as in case of Companies? or any other procedure.
2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.
purchase plant and machinery
When Start Service Tax Deducted? How Many Percent is deduct? Service Tax deposited Date in Current 2011.
What is the difference between personal account real account and nominal account?
if company having a loss consecutive last more than 2 years, Depreciation on equipment should be appear in profit and loss a/c or pass the provision entry every unless company not recover profit. Please explain.