requirements to be on the Chicago Mercantile Exchange. That would be the goal because it is the largest and have the largest number of potential investors 3. The Pros and Cons of Being Publicly Listed caled Robo-Tech Inc., which specializes in developing robotic imbs. Robo-Tech's sales are on the rise, gross profit margins are strong, and market share is growing, so Bradley feels that the timing is right to retool the manufacturing operation expand the distribution network, and add new products in order to remain competitive and grow the fims value. Robo-Tech needs to acquire addtional financing resources, and Bradley has decided to take his company public in order to meet its long-term goals William Bradley is the founder and chief executive oficer of a private firm C. Not enough infomation is provided to determine whether Robo-Tech meets the listing requirements to be on the NASDAQ. That wouild be the goall because t is the largest and have the largest number of potential investors D. Not enough information is provided to determine whether Robo-Tech meets the listing requirements to be on the NYSE Euronext. That would be the goal because it is the largest and have the largest number of potential investors Bradley understands that going from private to public requires some major adjustments. In particular, instead of reporting to a few private investors, management will be responsble to hundreds, or even thous ands, of new "owners" who expecta good return on their investment. This public pressure may at times push the company to focus on short-term gains rather than long-tem goals. In addition to dealing with new outside shareholders, Robo-Tech will have to comply with the SEC's stricter porting requirements on public companies. For example, quarterly and annual reports must be filed with the Securities and Exchange Commission and an annual report must be sent to all shareholders d. Once Robo-Tech has sold its shares to the public does it care whether capital markets are eficient? In other words, how does market efficiency affect Robo-Tech? (Select all the choices th at apply.) A. If the market is efficient, prices are an unbiased estimate of firm value. Under Bradiey's management, Robo-Tech has had a history of strong financial performance and solid growth potential, and well developed strategic vision and business plan. In order to help with the process of going public, Robo-Tech has hireda eam of professional advisors, including lawyers, investment bankers, and accountants. These professionals will assist Robo-Tech with the registration, valuation, marketing, and placement processes. Robo-Tech will also have to decide on a listing exchange, where its shares will continuous trade after the public offering. Options include the New York Stock Exchange, the Amenican Stock Exchange, a regional exchange, or the Nasdaq Market. B. If the market is efficient, the firm will have an increased number of potential investors and this will help Robo-Tech sell shares now and in the future, as it continues to need funds to finance C. If the market is efficient, the more confidence investors will have in the firm's market place. D. If the market is efficient, there is guarantee the the firms market price wil always increase, even in a bear market If all goes according plan, Robo-Tech will soon have access to a new valuable exdernal finanding resource, that it can use to finance it future growth potential To Do a. For Robo-Tech, what are the advantages of being a publicly listed company? b. For Robo-Tech, what are the disadvantages of being a publicly listed company? c. If Robo-Tech prefers that its shares trade on a centralized exchange, what listing exchanges make the most sense for Robo-Tech and why d. Once Robo-Tech has sold its shares to the public does tcare whether capital markets are efident? In other words, hovw does market efficiency affect Robo-Tech? a. For Robo-Tech, what are the advantages of being a publicly listed company? (Select all the choices that apply) A. By going public, the owner can diversify their portfolio. In fact, wthout going public, it is dfficult to B. Going public gives the owner the chance to get a return for his or her hard effort. D. For a publicly-isted company shareholders provide cash without having an ablity to take the determine the value of their fim. . Being a publidy-Isted oompany provides access to the money they need to grow. company to bankruptcy court if a payment is not made. b. For Robo-Tech, what are the disadvantages of being a publicy listed company? (Select all the choices that apply) A. One disadvantage to going public is that there may be low trading volume for the companys shares. B. One disadvantage to going public is that there is no guarantee that shareholders will want to nvest in one's fim. If they avo id ts shares, it will be priced below expected value. C. One disadvantage to going public is that going publicly leaves the owner open to the potential that an individual or firm might purchase all the publicly available shares, or at least enough to control the board of directors, and remove the founder from the management team. D. One disadvantage to going public is that the company wil have a hard time raising money through other means, such as bonds or prefemed shares c. If Robo-Tech prefers that its shares trade on a centrali zed exchange, what listing exchanges make the most sense for Robo-Tech and why? (Select all the choices that apply.) A. Not enough information is provided to determine whether Robo-Tech meets the isting requirements to be on the largest and have the largest number of potential investors Tokyo Stock Exchange. That would be the goal because it is the B. Not enough information is provided to determine whether Robo-Tech meets the isting