corporate tax status‚ Journal of Finance 53‚ 131-162. Harris‚ Milton‚ and Arthur Raviv‚ 1991‚ The theory of capital structure‚ Journal of Finance 39‚ 127-145. Helwege‚ Jean‚ and Nellie Liang‚ 1996‚ Is there a pecking order? Evidence from a panel of IPO firms‚ Journal of Financial Economics 40‚ 429-458. Hovakimian‚ Armen‚ Tim Opler‚ and Sheridan Titman‚ 2001‚ The debt-equity choice‚ Journal of Financial and Quantitative Analysis 36‚ 1-24. Ikenberry‚ David‚ Josef Lakonishok‚ and Theo Vermaelen‚ 1995
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! ! 1 . How does Facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies? Advertising accounted for 98 per cent of Facebook’s revenues in 2009‚ 95 per cent in 2010 and 85 per cent in 2011. Facebook offered advertisers the opportunity to segment and target its users based on their demographic information‚ expressed interests and social connections. Another part of the revenue was generated by its payments business
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uestion 2--------------------------------------------------- Benefits of an IPO Access to public capital markets will provide Boston Beer with a continual source of equity funds to expand sales while maintaining a low leverage ratio. The IPO will provide an exit strategy for the company’s current investors. The additional equity will allow for debt to be refinanced at preferable interest rates. The publicity from the IPO offering will benefit the company with marketing and sales‚ particularly in
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Prada to solve this problem is to raise capital in the stock market‚ which we could refer as IPO. Given the current market conditions‚ listing in Hong Kong might appears to be the best choice after all. But‚ before we go further in details about the pros and cons about listing in Hong Kong‚ we should first discuss the reasons why we choose IPO over Debt and Strategic partnership. Compare to issuing debt‚ an IPO will not add any more burden to the company’s balance sheet‚ which for Prada‚ was already
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Case study : Amazon 1. What is the business model for Amazon.com? How does their business model differ from that of Barnes and Noble or Borders? How would you value Amazon.com? Amazon is a relatively small player in the bookstore industry‚ and its main competitors are Barnes & Noble and Borders. Despite the difference in scale‚ the company shows great promise‚ because its business model overcomes many of the competitors’ drawbacks. Amazon operates using a web-based platform to sell
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According to RightNow’s internal forecast‚ the revenue growth rate with the new strategy is 67%. In the pro forma balance sheet‚ I assume that line of credit‚ long-term debt‚ and shareholders’ equity stay the same. Other accounts grow at the same speed as revenue grows. From Exhibit 1‚ RightNow doesn’t need additional fund to support the strategy in 2004; instead‚ it could repay its debt. As a software company‚ RightNow has huge amount of deferred revenue‚ and this liability actually plays an important
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SHOULD I JUMP INTO THE BANDWAGON? THE CASE OF FGVH IPO Ruzita Abdul Rahim Mohd Hasimi Yaacob MONEY FALLS FROM THE SKY It was a fine Friday afternoon on June 8‚ 2012 but Afiq Firash was still startled by the 18th birthday gift that he received from his mother last night. It was a saving account book of Tabung Haji showing a balance of RM25‚000 and a brief note “Happy birthday sweetheart. Treat the money well and it might even pay for your degree” written on the birthday card. To Afiq Firash
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Goldman Sachs to companies in its industry the information in Exhibit 2 of the case has to be used. A way to compare the information given to Goldman Sachs is to find the average of the comparable companies’ information to use it to find an approximate IPO for Goldman Sachs. The average of the price to book value ratios and the average of the price per earnings ratio would be are calculations that can be found in order to compare Goldman Sachs to its competitors. The average for the price to book ratio
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Currently‚ Kudler Fine Foods is a privately owned business but needs to expand. Three methods of expansion will be analyzed by SWOT analysis and feedback will be provided for a recommendation of the best method of expansion. Going Public through an IPO Two strengths exist as reasons for
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By going public Rosetta Stone would be able to obtain the capital required to expand the business and enter new markets. Another advantage of going public is the ability for Rosetta Stone to increase its brand’s image‚ awareness‚ and reputation. An IPO could be a good move because of the increased globalization occurring that has led to more and more people learning needing or wanting to learn different languages. Going public as the economy is just coming out of its recession could prove to be advantageous
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