Reference no: EM132468382

Point 1: A company needs to an additional $23 million dollars. This sum is too large for a bank line of credit and no one in the family has additional funding to invest into the company.

Point 2: One alternative is to publicly issue debt (corporate bonds), the other alternative is to issue common stock to the public. Using your expertise in financial management, conduct an analysis of the current situation and provide a summary of your recommendations.

In your summary you must:

Question 1: Describe the process (in detail) of how a public offering occurs.

• A chronological account of how most public offerings would be an appropriate format, although not required.

Question 2: Discuss the impact and implications of each alternative.

Question 3: Explain how each alternative affects control over the company.

• As a company, the internal affairs and finances of the company were well guarded from the public view by the family.

Question 4: As a new IPO, how would the guarding of their finance change?

Question 5: What are the financial reporting effects of this decision?

Question 6: How will additional debt impact future earnings?

Question 7: How will new stockholders change the management of the company?