After a Public Offering

question 47

Multiple Choice

After a public offering

• A) there is a higher tolerance for management mistakes.
• B) management decisions are under a higher level of public scrutiny.
• C) there is less shareholder pressure for dividends.
• D) less information is made public for competitors.

---

Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing units of ownership or equity in a corporation.

Zero-growth Perpetuity

A type of investment that pays a fixed amount of cash flows indefinitely, with no expectation of growth in the payments.

Stable Cash Flow Patterns

A financial condition where the inflows and outflows of cash are predictable and consistent over time, facilitating business planning.

Discounted Free Cash Flow

A valuation method that estimates the value of an investment based on its expected future cash flows, adjusted for the time value of money.