Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The biggest IPOs in US history, in bln. $US Uber's IPO Uber Technologies, Inc., commonly known as Uber, offers vehicles for hire, food delivery, package

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The biggest IPOs in US history, in bln. \$US Uber's IPO Uber Technologies, Inc., commonly known as Uber, offers vehicles for hire, food delivery, package delivery, couriers, freight transportation, and, through a partnership with Lime, electric bicycle and motorized scooter rental. Uber raised $8.1 billion from it's IPO in 2019. Initial public offering (IPO) or stock market launch colloquially known as going public, is a process for a privately held company to be transformed into the public company. Questions 1. Thineanamation 2. (0.5 point) How was accounting equation impacted by the stock issuance? a. Assets increased, liablities increased, equity increased. b. Assets increased, liabilites unaffected, equity increased. c. Assets increased, liabilities increased, oquity unaffected d. Assots decreased, tiebilises unaffected, equily increased 2. ( 0.5 point) How was accounting equation impacted by the stock issuance? a. Assets increased, liabilities increased, equity increased. b. Assets increased, liabilities unaffected, equity increased. c. Assets increased, liabilities increased, equity unaffected. d. Assets decreased, liabilities unaffected, equity increased 3. (0.5 point) Did IPO directly affect Uber's operating income? - Yes - No 4. ( 0.5 point) Uber is obligated to pay back money raised as a result of the IPO (Initial Public Offering) in full to investors at a specified day: - Yes - No Use the following info for Questions 3 and 4. On June 20,2022 Amazon Inc. declared a 20-for-1 stock split. In a statement, the company said, "This split would give our employees more flexiblity in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company. "Prior to its most recent split, a share of Amazon stock was worth \$2,785.58, which converted to $139.28 after the 20101 split. Suppose, that your dearest grandma knowing your passion for technology bought you one Amazon share as a Christmas present in 2021. So, as of December 25 th, 2021 you became a proud Amazon investor. 3. (0.5 point) On June 66,2022, you received a message from Amazon, notifying you that you just become an owner of Amazon shares. a. 1 b. 2 c. 5 d. 50 4. ( 0.5 point) After the stock split you became an owner of a part of the Amazon company. (Put it differently, was your ownership stake diluted as a result of the stock split?) a. bigger b. smaller c. much smaller d. same (1 point) It is typical for the growing companies such as Amazon, Google, Twitter, Zoom etc. not to share their profits by distributing dividends to shareholders, as they believe that the companies have enough lucrative projects within companies to use cash. Mature companies are known for regular (quarterly) distributions. For example, Southwest Airlines Co is an air carrier based in Dallas, Texas. As of September 2023, it is the largest domestic air carrier in the United States, as measured by the number of domestic originating passengers boarded. In its 10-K (Annual report) wrote: "The quarterly dividend was paid on January 31, 2023. The Company currently intends to continue declaring dividends on a quarterly basis for the foreseeable future; however, the Company's Board of Directors may elect to alter the timing, amount, and payment of dividends based on operational results, financial con n, cash requirements, future prospects, and other factors deemed relevant by the Board. As of February 3, 2023, there were approximately 11,378 holders of record of the Company's common stock." How was accounting equation impacted by both the dividend declaration and cash payment? a. Assets (cash) decreased, liabilities increased, equity (retained earnings) decreased. b. Assets (cash) increased, liablities increased, equity (retained earnings) decreased. c. Assets (cash) decreased, liabilities unaffected, equity (retained earnings) decreased. d. Assets (cash) decreased, liabilities unaffected, equity (retained eamings) increased. e. Assets (cash) decreased, liabilities unaffected, equity (rotained earnings) increased. 5. (1 point) There are number of reasons, why the companies will buy back its shares. Southwest. bought back shares paying $2.4 billion dollars in its 2019 accounting year. How Southwest Airlines Co. balance sheet was impacte. the common stock buyback

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_2

Step: 3

blur-text-image_3

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

Strategic Management Theory And Cases An Integrated Approach

Authors: Charles W. L. Hill, Melissa A. Schilling, Gareth R. Jones

13th Edition

0357033841, 978-0357033845

More Books

Students also viewed these Accounting questions