Help with questions 1-4

S&S Air Goes Public Finally, Renata tells Mark and Todd that to file with Mark Sexton und Todd Story have been discussing the future SEC, the company must provide three years' audited til of SRS Ait. The company has been experiencing fast growth, and the two see only clear skies in the company's future statements. She is unsure about the costs of the wat tells Renata that the company provides audited financial However, the fast growth can no longer be funded by internal sources, se Mark and Todd have decided the time is right to ments as part of the bond covenant, and the company take the company public. To this end, they have entered into Sa per year for the outside auditor discussions with the investment bank of Crowe & Mallard, 2751006 The company has a working relationship with Renata Harper. the underwriter who will with the company's previous QUESTIONS bond offering, Crowe & Millard have assisted numerous 1. At the end of the discussion, Mark asks Renata about the small companies in the IPO process, so Mark and Todd feel Dutch action IPO process. What are the differences in code with this choice the expenses to S&S Air if it uses a Dutch auction 10 Renata begins by telling Mark and Todd about the process. versus a traditional IPO7 Should the company to public Although Crowe & Mallard charged an underwriter fee of through a Dutch auction or use a traditional under 4 percent on the broadering the underwriter fee is 7 percent on all initial stack offerings of the size of S&S Air's offer- offering? ing Related to the company can expert 2. During the discussion of the potential IPO and S&S to pay should expenses, stando future. Mark states that he feels the company should nie In SEC static foes, and the other filing fees $75 million. However, Renata points out that our Additionally, to be listed as the NASDAQ, the com pany needs more cash in the near future, a secondary puy S100.00. These gader agent fees of stand fering close to the IPO would be problematic. In The company should also suggests that the company should raise $90 milio IPO. How can we calculate the optimale of the the IPO What are the advantages and disadvantages of the size of the IPO to 590 million mag een expecte que expenses ocated with 136,000 Chapter 15 Raining Capital 533 3. After deliberation and Todd have decided that the company should definn commitment offering with Crowe & Mallard in the lead underwriter. The IPO will be for $75 million scoring underpricing, how much will the IPO cost the company as a percentage of the funds plan. To sell the stock, the employees can tender their Share to be sold in the IPO at the offering price of the employees can retain their stock and sell it in the second ary market after S&S Air goes public. Todd asks you to advise the employees about which option is best. What would you suggest to the employees? received 4. Many employees of S&S Air have shares of stock in the company because of an existing employee stock purchase S&S Air Goes Public Finally, Renata tells Mark and Todd that to file with Mark Sexton und Todd Story have been discussing the future SEC, the company must provide three years' audited til of SRS Ait. The company has been experiencing fast growth, and the two see only clear skies in the company's future statements. She is unsure about the costs of the wat tells Renata that the company provides audited financial However, the fast growth can no longer be funded by internal sources, se Mark and Todd have decided the time is right to ments as part of the bond covenant, and the company take the company public. To this end, they have entered into Sa per year for the outside auditor discussions with the investment bank of Crowe & Mallard, 2751006 The company has a working relationship with Renata Harper. the underwriter who will with the company's previous QUESTIONS bond offering, Crowe & Millard have assisted numerous 1. At the end of the discussion, Mark asks Renata about the small companies in the IPO process, so Mark and Todd feel Dutch action IPO process. What are the differences in code with this choice the expenses to S&S Air if it uses a Dutch auction 10 Renata begins by telling Mark and Todd about the process. versus a traditional IPO7 Should the company to public Although Crowe & Mallard charged an underwriter fee of through a Dutch auction or use a traditional under 4 percent on the broadering the underwriter fee is 7 percent on all initial stack offerings of the size of S&S Air's offer- offering? ing Related to the company can expert 2. During the discussion of the potential IPO and S&S to pay should expenses, stando future. Mark states that he feels the company should nie In SEC static foes, and the other filing fees $75 million. However, Renata points out that our Additionally, to be listed as the NASDAQ, the com pany needs more cash in the near future, a secondary puy S100.00. These gader agent fees of stand fering close to the IPO would be problematic. In The company should also suggests that the company should raise $90 milio IPO. How can we calculate the optimale of the the IPO What are the advantages and disadvantages of the size of the IPO to 590 million mag een expecte que expenses ocated with 136,000 Chapter 15 Raining Capital 533 3. After deliberation and Todd have decided that the company should definn commitment offering with Crowe & Mallard in the lead underwriter. The IPO will be for $75 million scoring underpricing, how much will the IPO cost the company as a percentage of the funds plan. To sell the stock, the employees can tender their Share to be sold in the IPO at the offering price of the employees can retain their stock and sell it in the second ary market after S&S Air goes public. Todd asks you to advise the employees about which option is best. What would you suggest to the employees? received 4. Many employees of S&S Air have shares of stock in the company because of an existing employee stock purchase