Space Tours Wants to Do an IPO but Is Not

question 53

Multiple Choice

Space Tours wants to do an IPO but is not comfortable that underwriters will set the most optimal offer price for the securities.Which one of the following might the firm consider to address this uncertainty?

• A)Extended quiet period
• B)Extended lockup period
• C)Best efforts underwriting
• D)Dutch auction underwriting
• E)Standby underwriting

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Definitions:

FIFO Inventory

An accounting method where the first items added to inventory are the first ones considered sold.

Net Realizable Value

The estimated selling price of goods minus the cost of completion and the costs necessary to make the sale.

Lower Of Cost

A accounting principle that mandates reporting the cost of inventory and other assets at the lower of their original cost or current market value.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as GAAP.