Contrast the process of issuing external equity

Assignment Help Accounting Basics
Reference no: EM13217617

Apex Printing's executive team has indicated that an assessment of the project will be due in a week's time.

Primary Task Response: Respond to the following scenario with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.


As you review your calendar for the coming week, you are reminded that the due date for an assessment of the expansion project is fast-approaching. Mary sees you in your office and walks in to talk.

"I'm glad I caught you in your office," she says. "I've been thinking about the cost of issuing equity and debt because I know it will be burdensome for Apex," says Mary. "On the other hand, we know that if we are to grow as a company, we must comply with the requirements of the Securities and Exchange Commission (SEC) and issue equity as well as debt."

"It's a big decision," you agree. "Maybe it would help if I identified the costs of issuing equity, as well as any advantages and disadvantages of engaging in this process. I could also isolate two primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm must adhere, as well."

"You know, sometimes it's helpful to see things written down when making a big decision," she says. "Thanks."

For this discussion, identify the costs of issuing equity, as well as any advantages and disadvantages of engaging in this process. Also isolate 2 primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm must adhere.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

In your replies to 2 peers, contrast the process of issuing external equity with that of obtaining venture capital. Would it be optimal for Apex to seek venture capital instead of engaging in an initial public offering (IPO)? Why or why not?

Reference no: EM13217617

Questions Cloud

What is the initial outlay associated with the project : The NDBA corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, NBA would have 200 shares of stock outstanding. Under Plan II, NDBA would have 100 shares of stock.
Define financial data and social security numbers : Assume that you work in a large accounting firm that handles hundreds of client accounts containing confidential information, financial data, and social security numbers. Your firm conducts audits and prepares tax returns, all of which involve com..
Calculate the ratio of the initial to final speed of sound : Air expands isentropically from 1.5 MPa and 60 C (centigrade) to 0.4 Mpa. Calculate the ratio of the initial to final speed of sound.
Determine the mach number of this plane for the stated limit : Determine the Mach number of this plane for the stated limiting condition.
Contrast the process of issuing external equity : identify the costs of issuing equity, as well as any advantages and disadvantages of engaging in this process. Also isolate 2 primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm..
Explain bad public relations cause : approaches that any company could use in order to minimize potential adverse effects that bad public relations cause. Provide two (2) examples for each approach that demonstrate its potential impact on a company's image.
Element defining e-commerce : One element defining e-commerce, In what communication-specific ways might this increased flexibility be negative?
Explain a research method and design identify the strengths : Propose and Justify a Research Method and Design. Develop an envisioned methodology and design for your dissertation research topic based on the research problem, purpose, and previous research courses, and then write a research paper to identify ..
What is the expected value of profits for next year : Nile Riverboat company a major boat building company highly sensitive to the economy, expects profits next year to be $2,000,000 if the economy is strong, $1,2000,000 if the economy is steady and minus $400,000 if the economy is weak.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Least effect on sample size

Which of the following has the least effect on sample size:

  Supremacy provision in federal constitution

Assess the supremacy provision in the Federal constitution. Discuss how the passage of a state tax bill is similar to the passage of a Federal law.

  Company''s stockholders equity

Barrett Company's stockholders' equity equals one-fourth of the company's total assets. The company's liabilities are $360,000. What is the amount of the company's stockholders' equity?

  Determine the depreciation

A Kubota tractor acquired on January 9 at a cost of $75,000 has an estimated useful life of 20 years. Assuming that it will have no residual value, determine the depreciation for each of the first two years:

  Revenues and expenses recorded under gaap

When should revenues and expenses be recorded under GAAP? Are there other limitations tot he Traditional Income Statement format besides timing?

  Participation in the years net income

Determine Hassell's and Lawson's participation in the year's net income of $342,000 under each of the independent assumptions above.

  Determine the book value of purchase

The Digby team has just purchased $39,660,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $3,966,000 (1/10th of its original cost). What will b..

  Widgets for production

Kasten, Inc. budgeted 10,000 widgets for production during 2010. Kasten has capacity to produce 12,000 units. Fixed factory overhead is allocated to production. The following estimated costs were provided:

  Partner-in-charge and a consulting partner

What is the purpose of having both a partner-in-charge and a consulting partner on each audit engagement? should the partners be rotated among thier clients periodically? why or why not? (short question answer)

  Journal entries to record the pension expense

Prepare journal entries to record the pension expense and funding of plan assets to verify the change in the pension asset/liability.

  Investor in stocks and bonds

Fluent, an investor in stocks and bonds, wanted to increase his portfolio but wanted to minimize his tax liability on the income from the bonds. He is presented with the following alternative investments:

  Bluebirds deemed paid foreign tax credit

What is Bluebird's deemed paid foreign tax credit related to the dividend received (before consideration of any limitation)?

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