Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 23, Problem 15P

a.

Summary Introduction

To determine: The amount of money raise by the M Company.

Introduction:

The private companies offer their stock for the first time to the public and this offering is termed as the initial public offerings.

b.

Summary Introduction

To determine: The amount of money received by the venture capitalist.

Introduction:

The firm raises their capital in many ways. In general, the startup companies are not provided with the loans from the banks because the start-up companies do not have assets and they are the fledging entrepreneurs with no track record.

Thus, the companies get finances from the market that provides finance for the new companies that offers high-risk ventures is termed as the venture capital market. The capital that is provided to the firm is the venture capital. The venture capital is the financing that is made for the high-risk ventures.

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