As a Result of Its IPO, Facebook Received

question 12

Multiple Choice

As a result of its IPO, Facebook received:

• A) less than half of its true value.
• B) almost double its true value.
• C) about 75% of its actual value.
• D)about the maximum value that it could.

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Definitions:

Breakeven

A situation where the sum of all costs equals the sum of all revenues, with no profit or loss occurring.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, often expressed as a percentage of the cost.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding cost of goods sold.

Mark-up

The difference between the cost of a good and its selling price, expressed as a percentage over the cost.