a) Discuss two advantages and two disadvantages of going public for firms. (4 marks)

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. The firm's share price closes at $4.20 on its first day of trade. What is the total cost of the IPO. (4 marks)

c) Explain why venture capital funding is critical for start-up firms with a lot of intangible assets. (1 mark)

d) Discuss the problem of information asymmetry in venture capital funding. (1 mark)