Why would a company consider going public

Reference no: EM132041447

Question: Please answer the following question in a 100 your own words. Cite your reference

Randy's, a family-owned restaurant chain operating in Alabama, has grown to the point that expansion throughout the entire Southeast is feasible. The proposed expansion would require the ?rm to raise about $18.3 million in new capital. Because Randy's currently has a debt ratio of 50% and because family members already have all their personal wealth in- vested in the company, the family would like to sell common stock to the public to raise the $18.3 million. However, the family wants to retain voting control. You have been asked to brief family members on the issues involved by answering the following questions.

Why would a company consider going public? What are some advantages and disadvantages?

Reference no: EM132041447

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