What are reasons why companies would choose to have an ipo

Assignment Help Corporate Finance
Reference no: EM131482211

Discussion- Initial Public Offerings

There is something exciting about being a part of an Initial Public Offering (IPO). Who can forget Martha Stewart banging the gavel at Wall Street's opening on the day her stock went public?

However, the reality is something completely different. While we remember Stewart at the top of her game, we also remember what happened soon after. Public companies are under much more scrutiny. In recent years, many companies have changed course and gone private.

For this assignment, address the following questions:

• What is the difference between a privately held company and a publicly held company? Explain your answers.
• What are the reasons why companies would choose to have an IPO? Why do some firms remain or go private? Explain your answers.
• Identify at least three regulatory agencies involved in an IPO. Explain their respective roles in such an offering.
• What are at least three of the government's requirements for a company that is considering going public?
• Is going public always the best strategy for a company? Why or why not?

Your answers should address all of the questions above.

Reference no: EM131482211

Questions Cloud

To what extent can the broad environment influence firm : What is a firm’s broad environment? To what extent can the broad environment influence a firm?
Explain how portfolio beta compares to your own willingness : Discuss how portfolio beta compares to your own willingness to take risks. Discuss whether you would rather hold an individual stock or a portfolio of stocks.
Overall performance-market-resource under operational goals : The lists of overall performance, market, and resource under operational goals;
Understanding of effective social media : Locate one good example of social media use by a company and one bad example of social media use by a company.
What are reasons why companies would choose to have an ipo : What are the reasons why companies would choose to have an IPO? Why do some firms remain or go private? Explain your answers.
At what levels of l will tpl and mpl : Construct your own example of a function that has a turning point. Check the second-order conditions to confirm whether this turning point is a maximum.
What is the indifference point for the two options : What are the two capacity options that Robbie needs to consider? What are their fixed and variable costs? What is the indifference point for the two options?
Differentiation strategy simultaneously : What does a business have to consider when trying to follow a cost leadership strategy and a differentiation strategy simultaneously?
What will dividend per share and external financing required : What will the dividends per share and the external financing required, if current dividend per share is maintained? If the projects meet the NPV and IRR tests.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd