Understanding Business
12th Edition
ISBN: 9781260092332
Author: Nickels
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 19.3, Problem 19.3AQ
Summary Introduction
To discuss: The way that the issuing stock can be an appealing option for financing a company’s growth.
Introduction: Initial public offering (IPO) refers to the issue of shares by the company to the general public.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Research and prepare the following for active discussion in no more than 300 words.
1. What is Common Stock and what is its relationship with an IPO?
2. How does a company go about issuing Common Stock?
3. How does Common Stock differ from Preferred Stock - EXPLAIN!!!
You are hired as a CFO of the company ABC. ABC has just been through an IPO process. The CEO is about to undertake a new investment project and know that one source of shareholder value is the unlevered cash flow. a) Explain the CEO another source of shareholder value when undertaking a new investment project
Comprehensively discuss sources of finance available for each of the following types of business Setup.
Also discuss suitability, advantage and disadvantages of each source
1.Sole Trader
2. Partnership
3.Private limited companies
4. Public Limited Companies
Chapter 19 Solutions
Understanding Business
Ch. 19.2 - Prob. 1TPCh. 19.2 - Prob. 2TPCh. 19.2 - Prob. 3TPCh. 19.3 - Prob. 19.3AQCh. 19.3 - Prob. 4TPCh. 19.3 - Prob. 5TPCh. 19.4 - Prob. 6TPCh. 19.4 - Prob. 7TPCh. 19.4 - Prob. 8TPCh. 19.4 - Prob. 9TP
Ch. 19.5 - Prob. 1MEDCh. 19.5 - Prob. 10TPCh. 19.5 - Prob. 11TPCh. 19.5 - Prob. 12TPCh. 19.8 - Prob. 13TPCh. 19.8 - Prob. 14TPCh. 19.8 - Prob. 15TPCh. 19.8 - Prob. 16TPCh. 19.9 - Prob. 19.9AQCh. 19.9 - Prob. 19.9BQCh. 19.9 - Prob. 17TPCh. 19.9 - Prob. 18TPCh. 19.9 - Prob. 19TPCh. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 1CTCh. 19 - Prob. 2CTCh. 19 - Prob. 3CTCh. 19 - Prob. 4CTCh. 19 - Prob. 5CTCh. 19 - Prob. 1DCSCh. 19 - Prob. 3DCSCh. 19 - Prob. 1VCCh. 19 - Prob. 2VCCh. 19 - Prob. 3VC
Knowledge Booster
Similar questions
- discuss the advantages and disadvantages of debt financing and common stock financing. Then, for your initial post, discuss the following: From the company’s viewpoint, why would it prefer to fund the venture initially with common stock instead of debt?arrow_forwardOne day, a woman walks in and offers you a proposal to franchise your business. You have a discussion with the owners and they ask you to identify some potential investors and develop a proposal. What tools might you utilize when preparing the proposal? What research might you do to assist you with this?arrow_forwardThe majority of M&A deals never appear in the financial press because they involve small, privately held businesses or family-owned businesses. What are some of the reasons a family owned or privately held firm may want to go public, i.e. through a reverse merger? Can you think of any reasons that discourage such firms from going public?arrow_forward
- Explain the following terms related to “long term financing” and raising capital” topics;- Dillution of stock price- Underpricing- Rights puzzle- Venture capital- IPOs and SEOsarrow_forward13-1 What is the specialty of a venture capital firm? Select one: a. seeking out entrepreneurs with new profitable ideas b. investing shareholders’ money in new businesses c. pooling funds from various sources and investing them d. setting up joint ventures e. borrowing money from financial institutions and lending it to new entrepreneursarrow_forwardUse a search engine and a site such as Yahoo! Finance to learn about Blue Apron’s current Prepare a brief summary, including the company’s current financial situation. Is it still a public company, and how has its stock fared? Would you invest in it? Explain your reasoning.arrow_forward
- How was the Zomato IPO and its response? Whether you should buy it or not?arrow_forwardYou have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor, and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-food area, maybe two(if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 3 years. After 3 years you will go on tosomething else. You have narrowed your selection down to two choices: (1) Franchise L, Lisa’s Soups, Salads, & Stuff, and (2) Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast…arrow_forward2. Discuss the various sources of debt capital available to entrepreneurs.arrow_forward
- Please give me the solution of the following question: Define a Company. Explain its features and also explain advantages and disadvantages of forming a public company. Discuss the crucial importance of cash to a business. Is the profit that a business makes a reliable indicator of its cash balances? What is the reason for the existence of Corporate Governance? Discuss some principles of good governance as described by the Corporate Governance Code. Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in a company’s level of gearing?arrow_forwardDiscuss the pros and cons, advantages and disadvantages, and risk factors of financing a digital publishing company through: Debt (borrowing the money from banks, friends, and family) Equity (sharing ownership with private and/or public investors, as with stock offerings) Identify ideas for possible sources of funding, both short- and long-term, that could be used in your business plan.arrow_forwardYou can start a business for yourself in three ways. What alternative would you choose to open a business by purchasing the intellectual property of a well-known brand? What are the advantages and disadvantages of this alternative?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning