Explain why the ipo is expected to be more successful

Assignment Help Project Management
Reference no: EM131298269

Lauderdale Clothing manufactures shirts and pants with the Lauderdale logo. It is attempting to engage in an initial public offering (IPO). Three years ago, the firm planned an IPO, but because market conditions and earnings for the year came in below expectations, the full value of the firm would not have been realized. Therefore, the plan was scrapped.

In the last three years, sales have increased by 20 percent and are currently over $250 million. Furthermore, profits have increased to more than $60 million, up from last year's profits of $32 million. The investment banker that will issue the stock for Lauderdale Clothing believes that Lauderdale is in much better financial shape today and better prepared to undertake an IPO of stock. The company has developed stronger management and has aggressively pursued international business.

Questions

1. Explain why the IPO is expected to be more successful now than it would have been three years ago.

2. Explain what types of debt and equity financing Lauderdale Clothing could undertake now and in the future.

3. What is the role of the investment banker in this IPO?

Reference no: EM131298269

Questions Cloud

Identify different methods of theft : Research Medical identity theft. Identify different methods of theft. Identify different preventative means. Create a Poster for the lobby and Brochure (3-panel, double sided) to be given to patients which explains medical identity theft and preven..
Who have a hand in gaining revenue in terms of manufacturing : They also have to keep in mind the shareholders, stockholders, customers, and all others who have a hand in gaining or losing revenue in terms of manufacturing the new or improved products in terms of longevity and success.
Performed a simple cost benefit analysis : All of us have performed a simple cost benefit analysis (CBA). We just might not have realized it! Every time we "shop around" or comparison shop, we are performing a simple cost benefit analysis.
Corporate taxes to determine the value of the levered firm : An unlevered firm has a value of $800 million. An otherwise identical but levered firm has $60 million in debt at a 5% interest rate. Its cost of debt is 5% and its unlevered cost of equity is 11%. No growth is expected. Assuming the corporate tax ra..
Explain why the ipo is expected to be more successful : Explain why the IPO is expected to be more successful now than it would have been three years ago.- Explain what types of debt and equity financing Lauderdale Clothing could undertake now and in the future.
Would the toronto road system be more efficient : With road tolls, a regional gas tax, and parking levies would Toronto roads become less congested? If the new charges cut commute times, would the Toronto road system be more efficient? Explain your answers
Consider three investments : Consider three investments: Investment A, investment B and Investment C with the costs of 600, 500 dollars and 400 dollars respectively. Investment A will bring you a cash flow of 100, 200 and 300 at the end of years 1, 2 and 3 respectively.
Why do venture capital firms prefer to invest in firms : What role do venture capital firms play in financing and monitoring small firms?- Why do venture capital firms prefer to invest in firms that have a high level of perceived need?
What would you expect the spot rate to be in one year : The 1 year interest rate on the Swiss francs is 5.5% and the dollar interest rate is 5.80%. If the current spot rate is $0.70/F, what would you expect the spot rate to be in one year? Now suppose that the policy in the U.S changes and leads to the ex..

Reviews

Write a Review

 

Project Management Questions & Answers

  Medical insurance premiums on her employees

Discuss how an individual would deduct each of the following expenditures. If more than one treatment is possible, discuss the circumstances under which each type of deduction would be obtained:

  Components of qualitywhat constitutes quality in healthcare

components of qualitywhat constitutes quality in healthcare organization employees and why these are the essential

  Implications of the internal environment

Individual Assignment: Analysing and Evaluating Implications of the Internal Environment. Examine and critically review the peer and faculty feedback that was offered during the Shared Activity.

  Explain the stages of decision making for a manager

Explain the stages of decision making for a manager who has just decided to enter a new market with an existing product line.

  Acme development corporation (adc)

ACME Development Corporation (ADC), a developer of custom homes and apartment complexes, has decided to standardize its project management practices and processes across its national organization. The goal is to standardize with one single project-sc..

  Communications used to gather information about sports

What forms of communications do you personally use to gather information about sports? - What is the 1-5-15 rule? -  What is media richness?

  Pert chart

Models the sequence of project tasks and their interrelationships using a flowchart diagrams

  How many days will the count be a minimum

If t days after a treatment the bacteria count per cubic centimeter in a body of water is given by C(t) = 20t2 - 120t + 800.- then in how many days will the count be a minimum?

  Identify areas in which the project was a success

Use the provided materials to draw conclusions about the hypothetical project; identifying areas in which the project was a success and areas that could be improved.

  During both months the shop employed six full-time

Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers.

  Explain one of principles of diffusion of innovation model

Explain one of the principles of the diffusion of innovation model that is most important for you to consider in the development of your public health campaign and explain why.

  Prepare an initial report focusing on project scope

Systems Project Management (COMP 0383) - role of a project manager within the broader perspective of strategic business management, understanding where projects come from and why they are selected.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd