Purchase Solution

IPO, Merger better than IPO

Not what you're looking for?

Ask Custom Question

What is an Initial Public Offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow?

Purchase this Solution
Solution Summary

Detailed solution expalining the above questions.

Solution Preview

Below are the answers:

What is an Initial Public Offering?

Initial Public Offering is the first sale of shares or stock to the public by a private company. Initial public offerings are made by the companies which require capital to expand its business. It can also be done by the private companies who want to be a publicly traded company. A company can raise money by two sources: by issuing either debt or equity. When the company issued equity to the ...

Solution provided by:
Sonia Agarwal, CA
Education
  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
Recent Feedback
  • "I got this feedback and I wanted to know if you can explain it to me. I noticed something within your workings which I believe is incorrect.  It looks like you've mistaken the Debt ratio for the Equity Multiplier.  You've done a calculation to determine Return on Equity (ROE) but if you take a look at the ratios provided for us you'll see ROE listed on the bottom line already.  You can use ROE, Profit Margin and Total Asset Turnover to figure out the Equity Multiplier amount.  Equity multiplier is not provided for us and we need to calculate it.  I really hope this is helpful to you.  "
  • "Very attentive to detail. Answers are designed in easy to understand format."
  • "Fast response and thorough answer"
  • "thank you very much! "
  • "thank you so much !!!!!!!"
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • Financial Decision Making: Project Selection and IPO

    Current number of shares Explain why the IPO was successful or not SAMPLE QUESTION 3 Provide an example of when a merger or an acquisition, rather than an IPO, is a more appropriate way to grow.

  • What is an Initial Public Offering (IPO)?

    254253 What is an Initial Public Offering (IPO)? What is an Initial Public Offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow?

  • Optimal cost of capital, WACC, IPO v merger or acquisition

    How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow?

  • Riordan Manufacturing

    For that, it has to adapt a strategy among IPO, merger or acquisition (Riordan, 2009). In this case, the best strategy, which Riordan should go for, seems to be IPO.

  • options for expansion

    Hence, IPO should be a longer term plan for the company, rather than something in shorter term. When the company grows in size and fund requirements for expansion is huge, IPO will be a good choice for the company.

  • Initial Public Offering Characteristics

    When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow? When IPO becomes expensive, time-consuming and a burden on executive time and talent, a merger or an acquisition can be a more appropriate way to grow.

  • IPO, Merger, Acquisition

    235904 Threats to an IPO, merger, and aquisition. Kudler is a gourmet/fine foods store which is a privately held company that wants to expand its operations.

  • What are the main elements in calculating cost of capital?

    What is an Initial Public Offering (IPO)? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow? 3.

  • IPO

    Merger allows restructuring as well as improving the culture of the organization. The firm can improve its profitability through economies of scale.

View More Related Solutions