Flora plc is a largo listed company which needs to raise new equity finance. It has decided to make an offer of new shares direct to the investing public. What method of public offer is being used by Flora plc? A. Offer for sale B. Initial Public Offering (IPO) C. Offer for subscription

Flora plc is a largo listed company which needs to raise new equity finance. It has decided to make an offer of new shares direct to the investing public. What method of public offer is being used by Flora plc? A. Offer for sale B. Initial Public Offering (IPO) C. Offer for subscription

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 13PB: You are a consultant working with various companies that are considering incorporating and listing...

See similar textbooks

Related questions

Q: Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir…

A: Return on Equity = Profit margin*Asset turnover ratio*leverage ratio Asset turnover ratio = Return…

Q: Ashburn Company issued 15-year bonds two years ago at a coupon rate of 9.4 percent. The bonds make…

A: Lets assume face value of the bond = $1000 Semiannual coupon amount = $47 (i.e. $1000 * 0.094 / 2)…

Q: 34. Prestwich Ltd's directors have continued to trade after the point where they should have…

A: Prestwich Ltd.'s directors have continued to trade after the point where they should have concluded…

Q: Mr. Ramos opened a time deposit of Php200,000 that earns 2.5% per annum. Suppose he agreed to leave…

A: Given, Amount deposited is Php 200,000 Rate is 2.5% per annum

Q: A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $305;…

Q: Assume the pure expectation theory holds: If the return on 6 years maturity treasury bill (TB) is…

A: Rate of return for different maturities have been given. Based on the information, we have derive…

Q: The three key groups in the economic environment are Group of answer choices consumers, economists,…

A: The economic environment refers to the determinants that has an impact on buying and selling habits…

Q: If your ____, your net worth on the balance sheet would have increased from one period to the next.…

A: Net Worth = Total Assets - Total Liabilities

Q: An investment offers $6,600 per year, with the first payment occurring one year from now. The…

A: Annual payment (C) = $6,600 Required return (r) = 0.05 Present value or value today = ? Present…

Q: Consider the three stocks in the following table. Pt represents price at time t, and Qt represents…

A: Given

Q: Which one is most correct about AFN (additional fund needed) A. AFN > 0 happens when a firm exhausts…

A: External funds needed: When a firm needs to expand to increase its revenues, it needs to increase…

Q: What is inventory turnover ratio time study observation? Time Formulas and standard data and what…

A: The inventory turnover ratio tells us the amount of time the company has sold and replenished or…

Q: Determine the effective annual yield for each investment. Then select the better investment. 6%…

A: 1. Nominal annual yield = 0.06 Semiannual yield (s) = 0.03 (i.e. 0.06 / 2) Number of semiannual…

Q: A couple just had a baby. How much should they invest now at 5.4% compounded daily in order to have…

A: Compound Interest The interest that can be earned above interest is known as compound interest. The…

Q: Generally, as income rises, the average propensity to consume Group of answer choices stabilizes…

A: Propensity to consume (in economic terms) refers to the consumers willingness to consume within the…

Q: In return for payment of P5000 at the end of 4 years and P8500 at the end of 9 years, a man agrees…

A: Earlier Cash flow: Payment of P5000 at the end of 4th year Payment of P8500 at the end of 9th year…

Q: 7. Sarah has an annual expenses of $625 for life insurance, a semi-annual car insurance premium of…

A: Annual expense of life insurance shall be divided by 12, semi annual car insurance premium shall be…

Q: QUESTION 1 Questions a. After-tax cash flows for two mutually exclusive projects (with economic…

A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…

Q: You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per…

A: There is need of proper planning for retirement and if done on time would produce good results in…

Q: How do insurance company makes money?

A: The insurance company is referred to as that company whose predominant and primary business is…

Q: You have also decided that you have a risk-aversion (A) of 4. (a) What is the expected return for…

A: Expected Return Expected Return (x̄)= (R1P1) + (R2P2) + . . . . . + (RnPn) where R- Expected Return…

Q: Now explain this meaning of G(s, 1 Forts, G(s, t) is the value at time t that will grow to equal 1…

A: Present value of a future amount With interest rate (r), period (n) and future value (FV), the…

Q: You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.4…

A: Offers by Czech Republic offers = 2.4 million Czech koruna Offers by Thai supplier = 2.9 million…

Q: 1. Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter…

A: The future value of an asset refers to the value that the asset acquires after a predetermined time…

Q: Investment X offers to pay you $5,400 per year for 9 years, whereas Investment Y offers to pay you…

A: We will use the concept of time value of money here. The concept of time value of money states that…

Q: 5. The cross elasticity of demand between Product M and Product N is positive. What is the correct…

A: Since you have posted a question with multiple questions, we will solve the first one for you. If…

Q: Using balance sheet information, the ____ ratio indicates your ability to meet current debt…

A: Balance sheet is a statements which gives amount of assets and liabilities at a point of time.

Q: e. f. Suppose most investors expect the inflation rate to be 5% next year, 6% the following year,…

A: Interest rate or yield of bond The interest rate or yield of bond is calculated as shown below.…

Q: A firm has a long-term debt-equity ratio of 0.4. Shareholders’ equity is $839,800. Current assets…

A: Solution:- Total debt ratio means the percentage of total debt in the total assets of the entity.…

Q: Miss Universe contestant who won a reward of 500,000$ invested it in the bank for 5 years at 10%…

Q: What are the differences between a money market and a capital market?

A: Two main sources of finance are: Internal sources External sources. Company requires funds for…

Q: Net Present Value of Project PA. (Round off amounts to the nearest Rand.)

A: Information Provided: Required rate = 15% Year 1 Profit = 8000 Year 2 Profit = 18,000 Year 3 Profit…

Q: Describe capital structure and explain why it is important

A: Capital is the money introduced by the owners of the company to run the business. It can be owned…

Q: SDJ, Inc., has net working capital of $2,710, current liabilities of $3,950, and inventory of…

A: Given, net working capital of $2,710 current liabilities of $3,950 inventory of $3,420.

Q: If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D)…

A: answer 5= bank a)

Q: 14. Mr. Reyes borrows P600.000 at 12% compounded annually. reeing to repay the loan in 15 equal…

A: When you take a loan then you have to make periodic regular payments towards the loan. The periodic…

Q: Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be…

A: Material cost = $11 Labor cost = $4 Overhead cost = $7,000 Interest in March = $8,200 Employee…

Q: Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1…

A: Solution:- When some amount is deposited somewhere, it earns interest on it. The amount initially…

Q: The following table shows the average returns for some of the largest mutual funds commonly found in…

Q: In a state where all the mechanics' liens are treated equally, there is $20,000 left to be…

A: Liens A lien is a right whereby the lien holder can hold another party's assets until the debt owned…

Q: A sudden reduction in interest rates would ______ the price of a 5-year bond ____ than the price of…

A: Bond: It is a financial debt instrument issued by the issuer (company) to raise debt capital from…

Q: The Volt Battery Company has forecast its sales in units as follows: January February March April…

A: Material cost = $11 Labor cost = $4 Overhead cost = $7,000 Interest in March = $8,200 Employee…

Q: Shekhar plans to invest $1,820 in a mutual fund at the end of each of the next 3 years. If his…

A: Information Provided: Annuity payments = $1820 Annual Period = 3 years Interest rate = 4%…

Q: We have often heard that a dollar today is worth more than a dollar tomorrow. In light of what you…

A: As stated above, the dollar today is worth more than a dollar tomorrow because of the inherent…

Q: 3. Ramoncito deposited P15,000.00 today and he deposited the same equal amount each month for the…

A: Information provided in the question as follows Amount of Deposit per Month = 15000 starting from…

Q: Using the information in the tables above (the Company, the Broker, and the Investor), solve the…

A: NOTE: As per our policy, we only answer up to three sub-questions when multiple sub-questions are…

Q: My friend, Ahmad, is trying to determine which of two opportunities he should invest in (only one of…

A: ROI stands for Return on Investment and is to be calculated by taking the cost of investment as…

Q: 2. If the current inflation rate is 3.6% and you have an investment opportunity that pays 10.9%,…

A: Inflation rate = 0.036 Nominal interest rate = 0.109 Real rate of interest = ? Real rate of…

Q: A washer dryer combination can be purchased from a department store by making monthly payments of…

A: Given: Monthly payment = $62.25 Interest rate = 24% Years = 3

Q: Match the concept with its correspondent description Stakeholder Shareholder theory Stakeholder…

A: There are several concepts given and then there is a list of description. We have to match the…

Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

Question

Flora plc is a largo listed company which needs to raise new equity finance. It has decided to make an offer of new shares direct to the investing public.
What method of public offer is being used by Flora plc?
A. Offer for sale
B. Initial Public Offering (IPO)
C. Offer for subscription
D. Underwritten offer for sale by tender

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You are a consultant working with various companies that are considering incorporating and listing shares on a stock exchange. One of your clients asks you about the various acronyms she has been hearing in conjunction with financial analysis. Explain the following acronyms and how they measure different things but may complement each other: EPS (earnings per share), EBITDA (earnings before interest, taxes, depreciation, and amortization), and NOPAT (net operating profit after taxes).
Which of the following statements about IPOs is (are) True: (i) An IPO refers to the first time a firm issues bonds to be bought by the public. (ii) An IPO refers to the first time a firm issues shares to be bought by the public. (iii) A secondary offering IPO is when a firm becomes public by allowing previous investors and founders to sell part (or all) of their shares.
Mikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru an initial public offering (IPO). This transaction is considered as: A. Private placement B. Public offering C. Any of these D. Financial institution transaction
An offering of shares to institutional investors at a discount to the current market price is known as a: Select one: a. Initial Public Offering (IPO). b. Private Placement c. Rights Issue d. Dividend Reinvestment Plan (DRP).
What is a Rights Issue?(a) The sale of rights to a bond coupon. (b) The right of shareholders to have the company buy back their shares. (c) It is where the firm raises additional equity capital after the IPO. (d) It is a sale of priority rights to creditors in the event of the company being wound up.
Question Two Discuss the benefits and drawbacks, to the shareholders of a company, of a public listing on a stock exchange compared to private equity finance as a way of disposing their shares. Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business. Explain the factors the venture capital fund is likely to consider or impose when financing the MBO
Indicate whether the following statements are true or false. If the statement is false, explainwhy.a. If a firm repurchases its stock in the open market, the shareholders who tender thestock are subject to capital gains taxes.b. If you own 100 shares in a company’s stock and the company’s stock splits two-forone,you will own 200 shares in the company following the split.c. Some dividend reinvestment plans increase the amount of equity capital available tothe firm.d. The Tax Code encourages companies to pay a large percentage of their net income inthe form of dividends.e. If your company has established a clientele of investors who prefer large dividends,the company is unlikely to adopt a residual dividend policy.f. If a firm follows a residual dividend policy, holding all else constant, its dividendpayout will tend to rise whenever the firm’s investment opportunities improve.
In what way is a preferred stock usually more similar to a bond than to a common stock? O a. Preferred stockholders are more risky than common stocks O b. Preferred stockholders elect the board of directors of the organization O c. Preferred bondholders participate in the growth of the company through increases in dividends and stock prices O d. Preferred stockholders are typical entitled fixed payments O e. If the company were to go into liquidation, preferred stockholders will be entitled to payments after common stockholders are paid-off
Nizwa investment company is willing to buy the equity shares directly from various companies as they think that buying the shares at the first moment will always give benefits for long timeThe market from where this transaction will be carried out is termed as a.Primary Market b.Regular Market c.Secondary Market d.None of the options A financial statement which shows the status of the worth of a company on a certain date is known as a.Cash flow statement b.Balance Sheet c.All of the options
Which of the following is True for Bonus Issue of Shares? a. It is an offer of new shares in the company and it will be distributed to the public for subscription. b. It is an offer of new shares in the company and it will be distributed to the board of directors c. It is an offer of new shares and it will be distributed to the existing shareholder at free of cost. d. It is not an offer and it will be distributed to the existing shareholder as per the market value
Please tell the procedure of investment banker, from the event that Company decide to issue IPO until investment banker sell all of it that buy from the company to the stock market, ( Do my understand that the market is always secondary market and investment banker is always underwriting firm is true?). - Does investment banker receive any fee from Issuer Company) , if any what's it called?
Describe the role of the investment banker in taking a company public. What is an IPO and what steps are taken in order to get the IPO ready for public offering? What does both the investment banker and the company that is going public want to happen on the first day of public trading for the company and why?