Can someone please help me answer these few questions, Thanks.
1- This does make me wonder if a company has ever felt that they made the wrong decision with an underwriter. I guess and example would be that a company wanting to become a publicly traded corporation, chose an underwriter with a really good success rate and reputation with underwriting; yet, although, their skills were high, they were not successful with the current company.
How might a firm determine just how successful the IPO was?
2- There would be no financing consideration because, an IPO is an equity transaction. There are two other financing considerations for a merger or acquisition that would be a bank loan or bond issues.
What’s the difference between these three?
3- Discuss the concept of a firm’s “target” capital structure. How might this be determined?
4- They mentioned they carry enough capital to withstand a two year down turn if necessary. It appears to me that this would put them in an ideal position to continue to invest in new technology while further developing existing technology.
How do firms determine just how much capital that would be?