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Capital Valuation Models Critique

Using the University Library or other sources, conduct research to find an example of new venture financial management where the capital-raising process has been initiated or completed. Assume the role of an entrepreneur, an investor, or a corporate new venture manager. From the perspective of your assumed role, prepare a 350-700-word paper in which you analyze the initial offering process and the financial outcomes, critique your chosen example, and offer recommendations. Within your critique and recommendations, be sure to include the stages of raising capital and any pricing strategies that went into the IPO. Provide the URL for the article you used for this report.

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Using the University Library or other sources, conduct research to find an example of new venture financial management where the capital-raising process has been initiated or completed. Assume the role of an entrepreneur, an investor, or a corporate new venture manager. From the perspective of your assumed role, prepare a 350-700-word paper in which you analyze the initial offering process and the financial outcomes, critique your chosen example, and offer recommendations. Within your critique and recommendations, be sure to include the stages of raising capital and any pricing strategies that went into the IPO. Provide the URL for the article you used for this report.

Overview of IPO

IPO is an Initial Public offer to an investor, which mean it is the first issue of equities by the company to the general public at large. Among the most popular reasons a company might choose to go public are to: raise capital to expand its business, finance acquisitions, pay debt and have greater and easier access to capital in the future. Thus financing issue is how much to raise the funds from the equity offer. What should be the optimal capital structure in order to minimize the cost of capital.

Case of Google

Google is one of the most successful new dot com companies presently. Their success is based on innovation, rapid growth, and an obsession to be ...

Solution Summary

The solution critiques models of capital valuation.

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