Answer the following statements true (T) or false (F)
1. Generally, the larger the dollar value of an issue, the smaller is the spread as a percentage of the offering price.
2. Google's IPO was controversial because Google used a Dutch investment banking firm to underwrite the IPO.
3. Private placement eliminates the expensive and lengthy registration process with the Securities and Exchange Commission.
4. Even though the firm may pay a lower interest rate on a private placement, it will pay higher out-of-pocket costs than a public offering.
5. Privately placed bonds are the most popular method of raising long-term corporate debt.
1. TRUE
2. FALSE
-Google's use of the Dutch auction process deals with the manner in which a selling range is established, marketed, and executed... NOT with the nationality of the firms involved. Any controversy was because of the issue price falling short of the anticipated initial selling range.
3. TRUE
4. FALSE
-The interest rate is usually higher, and the related costs are lower.
5. TRUE
-Private placements exceed 50% of long-term corporate debt.
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Indicate whether the statement is true or false
Singleton Company's perpetual inventory records included the following information:Date?Number of units and unit costTotal CostJanuary 1Beginning inventory240 units @ $9$2,160?March 4Purchase190 units @ $12$2,280?September 28Purchase430 units @ $11$4,730?Number of units sold during the year: 640If Singleton uses the FIFO cost flow method, its cost of goods sold would be $6,750 -110.
Answer the following statement true (T) or false (F)