Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Question
Chapter 15, Problem 1PS
a)
Summary Introduction
To choose: One of the following issue methods that more likely to employ the method.
a)
Expert Solution
Explanation of Solution
Given information:
For rights issue – initial public offering or further sale of an already publicly traded stocks.
Selection of more likely to employ this method:
For rights issue, the better option is further sale of an already publicly traded stock.
b)
Summary Introduction
To choose: One of the following issue methods that more likely to employ the method.
b)
Expert Solution
Explanation of Solution
Given information:
For the rule 144A issue – international bond issue or U.S bond issue by foreign corporations.
Selection of more likely to employ this method:
Based on the rule 144A issue, U.S bond issue by foreign corporations is more likely to employ.
c)
Summary Introduction
To choose: One of the following issue methods that more likely to employ the method.
c)
Expert Solution
Explanation of Solution
Given information:
For private placement – bond issue by an industrial company or issue of existing stocks.
Selection of more likely to employ this method:
For private placement, bond issue by an industrial company is more suitable.
d)
Summary Introduction
To choose: One of the following issue methods that more likely to employ the method.
d)
Expert Solution
Explanation of Solution
Given information:
For shelf registration – bond issue by larger industrial company or initial public offer.
Selection of more likely to employ this method:
For shelf registration - bond issue by a large company are more likely to employ.
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Students have asked these similar questions
Which of the following would NOT be considered a secondary
market transaction?
Select one:
O a. A buy order to a dealer for outstanding bonds of a
company trading OTC.
O b.A buy order to an investment banker for a new IPO stock
offering.
O CA buy order to a broker for shares of stock in a company
on NYSE.
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A) from/to the investment company
B) on an exchange
C) at the previous day's NAV
An offering of shares to institutional investors at a discount to the current market price is known as a:
Select one:
a.
Initial Public Offering (IPO).
b.
Private Placement
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Rights Issue
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Dividend Reinvestment Plan (DRP).
Chapter 15 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 15 - Prob. 1PSCh. 15 - Vocabulary Each of the following terms is...Ch. 15 - Prob. 3PSCh. 15 - Prob. 4PSCh. 15 - Prob. 5PSCh. 15 - Private placements You need to choose between...Ch. 15 - Prob. 7PSCh. 15 - Vocabulary Here is a further vocabulary quiz....Ch. 15 - Venture capital a. A signal is credible only if it...Ch. 15 - Underpricing In same U.K. IPOs, any investor may...
Ch. 15 - Costs of a general cash offer Why are the costs of...Ch. 15 - Prob. 12PSCh. 15 - Underpricing Construct a simple example to show...Ch. 15 - Rights issues In 2012, the Pandora Box Company...Ch. 15 - Prob. 15PSCh. 15 - Prob. 16PSCh. 15 - Issue costs In April 2019. Van Dyck Exponents...Ch. 15 - IPOs Refer to Section 15.1 and the Marvin...Ch. 15 - Prob. 19PSCh. 15 - Prob. 20PSCh. 15 - Prob. 21PSCh. 15 - Dilution Here is recent financial data on Pisa...
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