Which of the following statements is FALSE?
A) Primary shares are new shares issued by the company.
B) Today, investors become informed about the impending sale of stock by the news media, via a road show, or through the book-building process, so tombstones are purely ceremonial.
C) In a cash offer, a firm offers the new shares to existing shareholders.
D) Historically, intermediaries would advertise the sale of stock (both IPOs and SEOs) by taking out advertisements in newspapers called tombstones.
Answer: C
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Sensitivity analysis is a technique that ________
A) sets the budgets of alternative investment opportunities B) analyzes the effect of an investment on workers' morale C) evaluates the different available investment options D) shows how results differ when underlying assumptions change
If a magazine ad costs $500,000, total readership is 20,000,000, but only 2,000,000 fit the advertiser's target profile, the weighted (or demographic) cost per thousand (CPM) would be:
A) $25 B) $250 C) $2,500 D) $10