Public offerings are underwritten by an investment banker

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Reference no: EM132016010

1. A small percentage of initial public offerings are underwritten by an investment banker.

True

Fasle

2. According to the-bird-in-the-hand theory, investors might think dividends are less risky than potential future capital gains. Therefore, investors would value low payout firms more highly relative to high dividend paying firms.

True

False

3. In the roadshow, management can’t say anything that is not in prospectus, because company is in “quiet period.”

True

False

4. An investment banking company is not allowed to find targets for the client in an acquisition.

True

False

Reference no: EM132016010

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