Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
Question
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Chapter 15, Problem 1PS

a)

Summary Introduction

To choose: One of the following issue methods that more likely to employ the method.

a)

Expert Solution
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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)

Summary Introduction

To choose: One of the following issue methods that more likely to employ the method.

b)

Expert Solution
Check Mark

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)

Summary Introduction

To choose: One of the following issue methods that more likely to employ the method.

c)

Expert Solution
Check Mark

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)

Summary Introduction

To choose: One of the following issue methods that more likely to employ the method.

d)

Expert Solution
Check Mark

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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