1. Amerson Limited, a privately-owned company, has made significant research progress in the renewable energy sector. Based on projections the company is poised to be the leading firm in the industry. To bring the research to scale Amerson needs financing. As the investment banker assigned to Amerson explain the reasons to support your recommendation that the company should go public. (7 Marks)

2. Your manager, Paul requested that you explain to a client the basic elements of precedent transactions analysis. Provide the alternative name for the analysis, how the value is derived and how the information can be used. (4 Marks)

3. B & W Investment Bank (BWIB) is the lead broker for DiskPlus Limiteds (DPL) IPO. BWIB will be using a fully exercise over-allotment option of 15% for DLs IPO. BWIB will be underwriting 10 million shares at a price of $60 per share. The gross fee for the investment bank is 2%. After the offering the companys stock price increased to $62 per share. Use the green shoe option to calculate the funds BWIB will receive from this transaction. What amount will DPL receive? Provide explanations for your computations. (8 Marks)