a)
To choose: One of the following issue methods that more likely to employ the method.
a)
Explanation of Solution
Given information:
For rights issue – initial public offering or further sale of an already publicly traded stocks.
Selection of more likely to employ this method:
For rights issue, the better option is further sale of an already publicly traded stock.
b)
To choose: One of the following issue methods that more likely to employ the method.
b)
Explanation of Solution
Given information:
For the rule 144A issue – international bond issue or U.S bond issue by foreign corporations.
Selection of more likely to employ this method:
Based on the rule 144A issue, U.S bond issue by foreign corporations is more likely to employ.
c)
To choose: One of the following issue methods that more likely to employ the method.
c)
Explanation of Solution
Given information:
For private placement – bond issue by an industrial company or issue of existing stocks.
Selection of more likely to employ this method:
For private placement, bond issue by an industrial company is more suitable.
d)
To choose: One of the following issue methods that more likely to employ the method.
d)
Explanation of Solution
Given information:
For shelf registration – bond issue by larger industrial company or initial public offer.
Selection of more likely to employ this method:
For shelf registration - bond issue by a large company are more likely to employ.
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Chapter 15 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
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