Refer to Theory in Practice re Groupon Inc Required a
Refer to Theory in Practice re: Groupon Inc.

Required
a. Do you agree with Groupon’s policy of capitalizing marketing costs for purposes of reporting its earnings to investors? Explain your answer.
b. Regardless of your answer to a, suggest a less aggressive way of accounting for revenue by Groupon.
c. Do you feel that Groupon’s management accepted securities market efficiency? Explain.
d. To what extent is the share price behaviour of Groupon during and following its IPO consistent with securities market efficiency? Explain.

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