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Initial Public Offering (IPO)

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

1. How would you identify the optimal cost of capital for a organization? 2. What is meant by Weighted Average Cost of Capital (WACC)? Why is WACC a more appropriate discount rate when doing capital budgeting? 3. How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather tha

Riordan Manufacturing: Go Public Through an IPO or Acquire Another Company?

Riordan Manufacturing: In which you compare and contrast the three options and make a recommendation as to which strategy the selected organization should choose. Options: 1. Weaknesses of each approach 2. Strengths of each approach 3. Opportunities of each approach 4. Threats of each approach Approaches: a. The

PayPal's IPO Process

The on-line credit-card payment company PayPal had a successful Initial Public Offering and was then acquired by E-Bay. However, they first suffered a series of setbacks. Read the articles below and do some research in ProQuest and other search engines on PayPal. Write a three page (excluding title page and references) pa

Business Strategy in Releasing the Annual Stockholders Report

Can you help me get started with this project? ----------------------------- Abel Athletics is preparing to release its first Annual Stockholder Report since the company's recent initial public offering (IPO). The accounting department has already prepared and provided the financial statements and ratios (see below) for the

IPO Underpricing Problem

The Woods Co. and the Garcia Co. have both announced IPOs at $40 per share. One of these is undervalued by $11, and the other is overvalued by $6, but you have no way of knowing which is which. The Woods Co. and the Garcia Co. have both announced IPOs at $40 per share. One of these is undervalued by $11, and the other is overval

Change strategy for Gene One to implement a successful IPO

See attached document. After reviewing the Gene One scenario in Week Four on your page, imagine that you and your team members are the siblings of the late Don Ruiz. Everyone in the family (your learning team) has a different opinion about the leadership within Gene One and how that leadership should change to implement a su

IPO Offering: How Many Shares and Estimated Stock Price

A firm is planning an IPO. The underwriters say stock will sell at $20. The direct costs will be $800,000 and underwriters will charge a 7% spread. (a) How many shares must be sold to net $30 million. (b) If the stock price closes on day one at $22. per share how much will the firm have left on the table? (c) What are the

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1. Which of the following statements is CORRECT? a. One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a partnership. b. Corporations face fewer regulations than sole proprietorships. c. One disadvantage of operating a business as a sole proprietor is that the firm is

Investigate the idea of a Skype IPO

An IPO for Skype? Recently, the online auction giant E-Bay has announced their intention to sell their Skype division through an initial public offering (IPO). Some of you might be familiar with Skype, as they are one of the leaders in providing online video and audio conferencing services. Here is an article on this recent

Sampras Inc. is going public: what should the firm's IPO offer price be?

Sampras Inc. is going public and issuing 500,000 shares of common stock. The capital raised in the IPO will be used to fund the company's proposed expansion. A Dutch auction is being used to allocate shares in the Sampras inc. The bids for shares are shown below: Number of shares requested Price 50,000

Dixon Corporation Public Offering

Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. The estimated selling price is $30 per share with Dixon Corp. receiving $26.25 per share after the offering. Registration fees are estimated at $275,000. Use this information to answer the

FIN 370 - Virtual Organization Strategy Paper

I need help with this assignment. The organization that I have chosen is McBride Financial Services. This has to be at lease 300-400 words. Using the link on the rEsource page, access the Virtual Organizations. Select one of the Virtual Organizations. Assume that your selected organization is a privately held company and tha

Investors and Firm's Intrinsic Value, organization, business,

1-2: If most investors expect the same cash flows from Companies A and B but are more confident that A's cash flows will be closer to their expected value, which company should have the higher stock price? Explain 1-3: what is a firm's intrinsic value? Its current stock price? Is the stock's "true long-run value" more closely r


After doing some research both on Second Life and on online auction IPOs, write a four to five page paper answering the following question: What type of IPO should Second Life use - a traditional IPO or an online auction? In your paper you should consider the following issues: A. The type of investors Second Life is likely to

Real options in capital budgeting

1. What are real options? Why is it important for managers to determine the value of real options in capital budgeting decisions? Using an example explain how you can determine the value of a real option in the capital budgeting decision. In your response, include an example (use research article to answer the question). 2. I

Valuation of Teabucks by P/E Ratios

Finance Week 2 - Assignment 3 The valuation of Teabucks by P/E Ratio is the industry average (35) * Teabucks Net Income (40) => $1400M The valuation of Teabucks by Price/Sales is industry average (2.0) * total sales (750) => $1500M The valuation of Teabucks by Price/Cash Flow is industry average (20) * cash flow, which

Compute an evaluation for an IPO; number of shares and price

How many shares and at what price would you offer a firm whose valuation is: Valuation using P/E, Price/Sales, and Price/Cash Flow Ratio Industry Average 35*40=1,400 is P/E 750*2=1,500 is Price/Sales 85*20=1,700 is Price/Cash Flow Starbucks 52*40=2,080 is P/E 750*3.75=2,813 is Price/Sales 85*28=2,380 is Pric

Underwriting Costs Public Offering

Winston Sporting Goods is considering a public offering of common stock. Its investment banker has informed the compnay that the retail price will be $18 per share for 600,000 shares. The company will receive $16.50 per share and will incur $150,000 in registration, accounting and printing fees. a.) What is the spread on this

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. Kudler has three options for expansion; IPO, merge with another organization, or acquire another company in the same industry. Need 300 to 500 words on the following: What threats are associated with each option (IP