Aardvark is considering undertaking an IPO in order to raise money.Which of the following,if true,would strengthen the case for doing so?
A) The company's expected stock price will be low.
B) The company wants to maintain internal control over all its decision-making.
C) The company's customer base has been in decline.
D) The company has a healthy amount of assets.
E) The company is in a significant amount of debt.

Question

Quizplus · Accepted Answer

D)Offering an IPO means offering part of the company for sale, so a healthy amount of assets should ensure a decent stock price and expected performance. Choice A opens up the possibility that a corporate raider may take over the company. The other choices all weaken the case that now is a good time for an IPO.

Aardvark Is Considering Undertaking an IPO in Order to Raise