Which of the following is a reason for a firm to underprice new issues?
A) When the market is in equilibrium, additional demand for shares can be achieved only at a higher price.
B) When additional shares are issued, each share's percent of ownership in a firm is diluted, thereby justifying a higher share value.
C) When additional shares are issued, each share's percent of ownership in a firm is concentrated, thereby justifying a lower share value.
D) When the market is in equilibrium, additional demand for shares can be achieved only at a lower price.
D
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Research on MBO shows that people are impelled to set more difficult goals when
A. the goals have a significant impact on profitability. B. employees can avoid personal development. C. both management and subordinates participate. D. the goals emphasize corporate social responsibility. E. ethics are not a consideration.
When we weigh the profits and costs of one relationship against those we might derive from another relationship, we are establishing which of the following?
A. comparative relations B. rewarding relationship C. personal revelations D. comparison level for alternatives
When current information falls short of desired information there is an information gap
Indicate whether the statement is true or false
Ruth loves to bake homemade breads. She will use only Pillsbury flour because that's the brand her mother, the best baker Ruth ever knew, always used. Ruth's brand loyalty is a type of ________
A) behavioral targeting B) core competency C) cognitive dissonance D) heuristic E) self-esteem