Which of the following statements regarding best efforts IPOs is FALSE?
A) For smaller IPOs, the underwriter commonly accepts the deal on this basis.
B) The underwriter does not guarantee that the stock will be sold, but instead tries to sell the stock for the best possible price.
C) Often these arrangements have an all-or-none clause: either all of the shares are sold in the IPO, or the deal is called off.
D) If the entire issue does not sell out, the underwriter is on the hook.
Answer: D
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As the dollar's exchange value appreciates against the pound, U.S. residents tend to import more British goods and thus demand more pounds.
a. True b. False
If a company has both common and preferred shares outstanding and wishes to calculate book value per share,
a. net assets must be divided by the total number of both classes of stock. b. net assets, less the redemption value of the preferred stock, must be divided by the number of shares of common stock outstanding. c. stockholders' equity must be divided by the total number of both classes of stock. d. stockholders' equity, less the cost of treasury shares held, must be divided by the number of common shares outstanding.
The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.
Answer the following statement true (T) or false (F)
The total fixed overhead variance is calculated by the following formula:
A) Total actual overhead - Total applied overhead B) AFOH - Standard overhead rate x SH C) AFOH - SFOR x SH D) AFOH - SFOR x AH E) Total actual overhead - SFOR x SH