Going public” and issuing stock is neither simple nor inexpensive. Go online or use other sources to fi nd out the average cost of an initial public offering. A stockbroker may be able to help you.

1. Calculate If a medium-sized software development company with a current annual net income of $10 million wants to “go public” and raise

$75 million for growth and expansion, determine the total worth of stock it will have to sell to net this amount.

2. Analyze What factors will be involved in setting the initial stock price?