Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A dot.com company structures its initial private placement so that it will have a very minor profit and enough shares to show only 1 cent

A dot.com company structures its initial private placement so that it will have a very minor profit and enough shares to show only 1 cent in profit. Then, it continues to build the company but each 1-cent in earnings growth per share appears to be a 100% improvement in the horizontal analysis. Was it ethical to initially start the company showing a very minor profit so future profits would appear to be phenomenal growth?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Managerial Finance

Authors: Scott Besley, Eugene F. Brigham

12th Edition

0030258723, 9780030258725

More Books

Students also viewed these Finance questions

Question

7.3 Describe considerations in the preliminary applicant screening.

Answered: 1 week ago

Question

7.2 Explain the selection process.

Answered: 1 week ago