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Explain the information role of a stock exchange

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Reference no: EM133003137

Altimate Ltd. is a private company that has been very successful over the past ten years. The CEO and the large shareholders of the business decide to go through an IPO process to grow the company's business. The executives plan to raise $100 million through the IPO.

A. Identify and discuss the reasons why Altimate Ltd. would decide to be listed on the stock exchange.

B. Assume three years after the initial offerings, the executives are now considering a dividend reinvestment plan to fund a project worth $1 million. Discuss the rationale of raising capital through the dividend reinvestment plan.

C. Use relevant examples to explain the information role of a stock exchange.

Reference no: EM133003137

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