Explain public offering in the Indian context and bring out the pros and cons of raising capital via an IPO. Explain briefly, no plagiarized answers.
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Q: Explain public offering in the Indian context and bring out the pros and cons of raising cap
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Q: What are the main costs associated with an initial public offering (IPO)?
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Q: Briefly explain the term initial public offering (IPO). Why would a company choose to go public?
A: Initial Public offering is a key term used in financial markets. It has been explained in the next…
Explain public offering in the Indian context and bring out the pros and cons of raising capital via an IPO.
Explain briefly, no plagiarized answers.
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- What is the purpose of an initial public offering (IPO)? How does an investment bank facilitate the process? List and describe several recent IPOs. Discuss the advantages and disadvantages of an IPO.Which of the following is true about IPO? A) Investment banks form underwriter syndicate.B) Road show is not necessary.C) Book buildings are only open to private equities.D) IPO bid winner will pay higher price than the true value of the stock.The stockholders’ claim in a levered firm can beviewed as a call option; stockholders have the optionto purchase the firm’s assets by paying off its debt.What incentives does this provide to stockholdersand managers in choosing investment projects?
- Which of the following is not a way that a firm might seek to raise new capital?a. Initial Public Offering (IPO)b. Rights issuec. Stock splitd. Seasoned Equity Offering (SEO)e. All of the above are ways that a firm might seek to raise new capitalMikasa Enterprises needs additional funding and intends to sell its shares in the stock market thru an initial public offering (IPO). This transaction is considered as: A. Private placement B. Public offering C. Any of these D. Financial institution transactionLet’s discuss the intermediary in an initial public offering (IPO) using trading terminology. In a best-efforts IPO (rather than firm commitment IPO), does the investment bank act as an agent/broker or a principal/dealer? (a) agent/broker (b) principal/deale
- What are the main costs associated with an initial public offering (IPO)?Your corporation needs additional capital to fund an expansion. Discuss the advantages and disadvantages of raising capital through the issuance of stock. Would debt be a better option? Why or why not?Which of the following statements correctly describes the nature of indirect financing as discussed in lectures? Group of answer choices A) It is the source of financing whenever an investor purchases shares that are listed on the Australian Securities Exchange. B) May involve an individual investor buying shares in a company when a company goes public via an initial public offering. C) More than one of the other answers is correct D) None of the other answers is correct E) It relies upon an intermediary to facilitate the flow of funds from surplus to deficit units, unlike direct financing
- Which of the following statements correctly describes the nature of direct financing as discussed in lectures? Group of answer choices A. More than one of the other answers is correct B. It is the source of financing whenever an investor purchases shares that are listed on the Australian Securities Exchange. C. None of the other answers is correct D. May involve an individual investor buying shares in a company when a company goes public via an initial public offering. E. It relies upon an intermediary to facilitate the flow of funds from surplus to deficit units, unlike indirect financing I answered D, is it correct?Which of the following statements is NOT true about Initial Public Offerings? A. An IPO occurs when a private company sells stock to the public for the first timeB. IPOs are less risky than a typical stock market investment since they are typically smaller companiesC. When an IPO occurs, a company raises money from public investors that they use to grow their businessD. IPOs are risky investments since the company going public often has a limited track record of performanceBolt Power Company Limited has asked you to prepare a quantitative analysis report as part of the proposal to be submitted to Bangladesh Securities and Exchange Commission (BSEC) in order to get permission to start the proceedings for Initial Public Offering (IPO), which requires you to develop your views on the current and future capital structure and to determine fair value of the company’s stock. Your Managing Director has asked you to address the following question in your analysis: Determination of IPO offer price with justification Assumptions: Effective Tax Rate: 25% Risk-free Rate (BD 10-Yr Treasury Yield): 94% Pre-Tax Cost of Debt: 50% Bangladesh Historical Equity Risk Premium: 20% Terminal Growth Rate: 02% Current Interest Rate: 00% In addition to that, you have collected the following information: Bolt’s free cash flows for the next 4 years are as follows: BDT. 3 million, BDT. 6 million, BDT. 8 million, and BDT. 16 million. After the fourth year, free cash flow…
