CR - IPO : GMAT Critical Reasoning (CR)
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# CR - IPO

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Director
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22 Jul 2006, 01:24
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Regards,
Brajesh
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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.
Director
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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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22 Jul 2006, 07:04
D - it shows they will be less likely to produce a profit moving forward.
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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

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22 Jul 2006, 11:16
D

provides a reason to believe that stock prices will not rise.
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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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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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22 Jul 2006, 13:29
Latching on to the D bandwagon as well...
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Uh uh. I know what you're thinking. "Is the answer A, B, C, D or E?" Well to tell you the truth in all this excitement I kinda lost track myself. But you've gotta ask yourself one question: "Do I feel lucky?" Well, do ya, punk?

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22 Jul 2006, 19:49
Straight D
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24 Jul 2006, 04:09
Will go with D.

Beacuse of this the stock prices may not rise.
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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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24 Jul 2006, 06:07
Jumping on D Train...
24 Jul 2006, 06:07
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