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CR - IPO

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Director
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CR - IPO [#permalink] New post 22 Jul 2006, 01:24
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
Please find below:

Regards,
Brajesh
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CR_IPO.GIF
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 [#permalink] New post 22 Jul 2006, 05:15
Looks like (D)

If resources become more expensive, then the overhead costs increase thereby reducing the future profit potential of the company. This could deter stockholders from buying future shares.
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 [#permalink] New post 22 Jul 2006, 06:57
D as well.

If the company's raw materials will be expensive in the future then it gives reasons for investors to hammer the stock price and so that the IPO will open at a premium is not guarunteed.
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 [#permalink] New post 22 Jul 2006, 07:04
D - it shows they will be less likely to produce a profit moving forward.
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 [#permalink] New post 22 Jul 2006, 09:06
shahnandan wrote:
D as well.

If the company's raw materials will be expensive in the future then it gives reasons for investors to hammer the stock price and so that the IPO will open at a premium is not guarunteed.


I have a problem with D but C is not partcularly goood as well

D says cost side will increase- take oil for example raw material is expensive but oil companies are making a killing.

also we know raw material prices could go up within next month but may come down 3 months later
thus kicking the stock up

what is the source please?
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 [#permalink] New post 22 Jul 2006, 11:16
D

provides a reason to believe that stock prices will not rise.
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Re: CR - IPO [#permalink] New post 22 Jul 2006, 11:40
D offsets the effect stock-rise due to increases profits by indicating that profits will go down because of increased prices of raw material..
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 [#permalink] New post 22 Jul 2006, 13:24
easy D... if the profits are bothered by something, in this case raw materials, then the IPO prices go south... used my finance knowledge here... hehe
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 [#permalink] New post 22 Jul 2006, 13:29
Latching on to the D bandwagon as well...
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 [#permalink] New post 22 Jul 2006, 19:49
Straight D
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 [#permalink] New post 24 Jul 2006, 04:09
Will go with D.

Beacuse of this the stock prices may not rise.
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 [#permalink] New post 24 Jul 2006, 05:40
A weaken the argument
B could be
C Strenghten the argument
D Could be
E out of scope

my choice is down to B and D giving then a closer look B does not really help us just describe a trend while D give us reason for an eventual price drop

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 [#permalink] New post 24 Jul 2006, 06:07
Jumping on D Train...
  [#permalink] 24 Jul 2006, 06:07
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