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# CR - IPO

Author Message
Director
Joined: 17 Sep 2005
Posts: 901

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22 Jul 2006, 02:24
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Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

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Regards,
Brajesh
Attachments

CR_IPO.GIF [ 10.2 KiB | Viewed 952 times ]

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Current Student
Joined: 29 Jan 2005
Posts: 5206

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22 Jul 2006, 06:15
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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Director
Joined: 26 Sep 2005
Posts: 571

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Location: Munich,Germany

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22 Jul 2006, 07:57
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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Senior Manager
Joined: 07 Apr 2006
Posts: 497

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22 Jul 2006, 08:04
D - it shows they will be less likely to produce a profit moving forward.

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Senior Manager
Joined: 09 Aug 2005
Posts: 281

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22 Jul 2006, 10:06
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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CEO
Joined: 20 Nov 2005
Posts: 2892

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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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22 Jul 2006, 12:16
D

provides a reason to believe that stock prices will not rise.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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Senior Manager
Joined: 20 Feb 2006
Posts: 331

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22 Jul 2006, 12:40
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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VP
Joined: 14 May 2006
Posts: 1399

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22 Jul 2006, 14:24
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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Director
Joined: 06 May 2006
Posts: 790

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22 Jul 2006, 14:29
Latching on to the D bandwagon as well...
_________________

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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Director
Joined: 18 Jul 2006
Posts: 523

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22 Jul 2006, 20:49
Straight D

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SVP
Joined: 30 Mar 2006
Posts: 1728

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24 Jul 2006, 05:09
Will go with D.

Beacuse of this the stock prices may not rise.

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Manager
Joined: 15 Nov 2005
Posts: 241

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Location: Italy

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24 Jul 2006, 06:40
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

_________________

â€œIf money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability.â€

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Senior Manager
Joined: 15 Aug 2004
Posts: 326

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24 Jul 2006, 07:07
Jumping on D Train...

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24 Jul 2006, 07:07
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