1. ABC Corporation is a very successful manufacturer of industrial equipment, is considering going public" next month to raise funds to help finance the company's future growth. The financial manager of ABC has approached the investment banking firm where you work, seeking help with its decision. Your boss has asked you to explain the nature of the financial markets and the process of issuing equity to the financial manager.

What pieces of information will you share with the financial manager of ABC Corporation so that the financial manager will be motivated to select your institution as an investment banker? Explain.