Contrast the process of issuing external equity

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Reference no: EM13217617

Apex Printing's executive team has indicated that an assessment of the project will be due in a week's time.

Primary Task Response: Respond to the following scenario with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.


As you review your calendar for the coming week, you are reminded that the due date for an assessment of the expansion project is fast-approaching. Mary sees you in your office and walks in to talk.

"I'm glad I caught you in your office," she says. "I've been thinking about the cost of issuing equity and debt because I know it will be burdensome for Apex," says Mary. "On the other hand, we know that if we are to grow as a company, we must comply with the requirements of the Securities and Exchange Commission (SEC) and issue equity as well as debt."

"It's a big decision," you agree. "Maybe it would help if I identified the costs of issuing equity, as well as any advantages and disadvantages of engaging in this process. I could also isolate two primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm must adhere, as well."

"You know, sometimes it's helpful to see things written down when making a big decision," she says. "Thanks."

For this discussion, identify the costs of issuing equity, as well as any advantages and disadvantages of engaging in this process. Also isolate 2 primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm must adhere.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

In your replies to 2 peers, contrast the process of issuing external equity with that of obtaining venture capital. Would it be optimal for Apex to seek venture capital instead of engaging in an initial public offering (IPO)? Why or why not?

Reference no: EM13217617

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