Fixed Income

During the Facebook IPO the overall stock market was very volatile (S&P 500 index value fluctuated a lot). This was very beneficial to the valuation and price discovery process during the IPO.   Group of answer choices   True   False

The Financial Sector-End of Chapter Problem You are discussing buying stocks with a friend and mention that you want to buy a few shares of Amazon stock. Your friend says that's a terrible idea because Amazon has never paid dividends to its shareholders so you would never receive any of Amazon's profits or make any money off the stock. What might you say to your friend to defend your desire to purchase a few shares of Amazon stock? You explain that the price of Amazon stock will always have to rise because dividends are not paid. the fundamental value of the stock is not determined by the dividends paid, but by the present value of future profits. purchasing stock is better than purchasing bonds because stockholders are the first in line to get paid if the company goes bust. buying a few shares will give you a significant say in how Amazon will be run in the future.

Which is NOT an IPO puzzle? Huge price spikes in the first couple trading days Underperformance in the long run Extreme IPO market cycles Hiring underwriters to do the job

The analysis that we have to provide is as follows: Review the specifics of the IPO, including underwriting spread and other expenses. Consider the concept of underpricing and a higher than normal first day spike in stock price. What does this mean for the issuing company? What does this mean for the underwriter?   The Mini Case we have to go off of is:   Mutt.Com was founded in 2015 by two graduates of the University of Wisconsin with help from Georgina Sloberg, who had built up an enviable reputation for backing new start-up businesses. Mutt.Com's user-friendly system was designed to find buyers for unwanted pets. Within 3 years, the company was generating revenues of $3.4 million a year and, despite racking up sizable losses, was regarded by investors as one of the hottest new e-commerce businesses. Therefore, the news that the company was preparing to go public generated considerable excitement. The company's entire equity capital of 1.5 million shares was owned by the two founders…

Which one of the following expressions about stocks is wrong? a.The estimated dividend payment and price of a stock that we get from the internet are just an educated guess: the average of analyst estimates. B. Shorting stocks are restricted in some market because of extremely high risk of shorting. C It is common for young companies typically do not pay dividends

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

N2    Part of road show to promote a firm’s IPO is called book building where institutional investors submit their intention to how many shares at what price levels. The investment bank will use this information to determine an offer price such that it can raise most capital. It seems that intentionally submitting lower prices would benefit the institutional investors, however the investment bank does not have to worry about this potential cheating behavior.   True   False

**True/false questions ** a) APR interest includes compounding effect. b) Most M&As in U.S. history were friendly, and the payment method was often cash. c) Stock A has a higher expected return and lower variance than stock B. Including B in an efficient portfolio is questioned. d) In IPO pricing, dual - class stock tends to be undervalued compared to single - class stock. e) The value of a company is not independent of its structure due to the tax shield

In a few sentences, answer the following question as completely as you can. Imagine you are the treasurer of a small manufacturing firm. Your firm is planning to go public (i.e., sell stock to investors for the first time). One unresolved question concerns the market’s required return on the stock. Given what you have learned, how do you think the required return will affect the market value of your firm’s stock? How would you go about estimating this rate?

Which is NOT a potential explanation for IPO short-term underpricing? Underwriters can unload more shares at a lower price. High returns on the first trading day attracts investors. Due to asymmetric information, firms need to lower price so outside investors are willing to invest. Firms want to raise more capital

Please correct answer and don't used hand raiting

About market efficiency, which of the following statements is right:a. In a highly efficient stock market, it is almost impossible for an investor to make profit from the stock market.b. In a highly efficient stock market, some smart investors can definitely beat the market even without the inside information. c. An investor can make profit by buying the stock of free Inc. since it just reported that the half-year profit doubled with respect to that during the same period in the last year. d. The stock prices of big companies are closer to their intrinsic values than those of small companies since more people follow those big companies, whereas few people follow those small companies.

Do fast answer accounting questions

Don't use ai given answer accounting questions

1. How come the stock exchange price crumbled so much in a few days? What has happened in these companies exactly? (Enron, Lehman, Satyam computers)

Not use ai solution this question general Accounting

7

Hi expert please give me answer accounting questions

Don't copy from another source, don't use chat gpt and give answer fast  i will give you upvote

Stock prices and intrinsic values Benjamin Graham, the father of value investing, once said, “In the short run, the market is a voting machine, but in the long run, the market is a weighing machine.” In this quote, Benjamin Graham was referring to the key difference between the “price” and the “value” of a security.   In November 2006, Citigroup’s stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007–2008 and by the end of October 2009, Citigroup’s stock price had plummeted to $4.27. Several banks went under, and others saw their stock prices lose more than 60% of their value.   Based on your understanding of stock prices and intrinsic values, which of the following statements is true? A stock’s intrinsic value is based on the fundamental cash flows and the company’s risk. OR The intrinsic value of a stock is based only on the perceived risk in the company.     You can estimate the value of a company’s stock using models such as the…

Stock prices and intrinsic values Benjamin Graham, the father of value investing, once said, “In the short run, the market is a voting machine, but in the long run, the market is a weighing machine.” In this quote, Benjamin Graham was referring to the key difference between the “price” and the “value” of a security.   In November 2006, Citigroup’s stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007–2008 and by the end of October 2009, Citigroup’s stock price had plummeted to $4.27. Several banks went under, and others saw their stock prices lose more than 60% of their value.   Q1. Based on your understanding of stock prices and intrinsic values, which of the following statements is true?   a. A stock’s intrinsic value is based only on the perceived risk of a stock.   b. A stock’s intrinsic value is based on true investor returns.   Q2. You can estimate the value of a company’s stock using models such as the corporate valuation model…