a) Discuss two advantages and two disadvantages of going public for firms. b) A company makes an
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Question:
a) Discuss two advantages and two disadvantages of going public for firms.
b) A company makes an initial public offering of shares to raise $210 million, at an offer price of $3.50 per share. The issue is underwritten at $3.00. The costs of preparing the prospectus, legal fees, ASIC registration and other administrative costs add up to $800,000. If the firms’ share price closes at $4.20 on its first day of trade. What is the total cost of the IPO?
c) Explain two important roles of investment bankers in the process of IPO.
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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