Taking a Company Public

The issue examined is addressed within the context of five problem areas. The problem areas addressed in this examination are (1) the purpose, functioning, and regulation of financial markets, (2) business planning, (3) the decision to go public, (4) the process of going public, (5) and procedural and legal requirements applicable to companies subsequent to going public. Each of these problem areas is addressed in a single, separate chapter, with the exception of (1) the decision to go public, and (2) the process of going public. The decision to go public is addressed within the context of two subproblems. These subproblems are (1) capital generation options to going public, and (2) the advantages and disadvantages of going public, together with the criteria for going public. Each of these subproblems is addressed in a single, separate chapter. The process of going public is also addressed within the context of two subproblems. These subpro

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mid1970smid1980s time period. Thus, the new equity stock contribution to total capital investment requirements was quite modest. From the mid1970s through the mid1980s, corporations began to rely more heavily on externally generated capital. In 1975, as an example, internal sources provided approximately 70 percent of the total capital raised by American corporations, while, by 1982, this proportion had declined to approximately 57.5 percent (Mackenzie 1987, 240257). When a firm must generate capital through shortterm financing there are specific factors which must be considered when selecting the source of such financing. Five specific factors must be considered in the selection of a shortterm financing source. These factors are (1) cost, (2) impact on credit rating, (3) reliability, (4) restrictions, and (5) flexibility. Financing cost is typically expressed as an interest rate. Thus, sources of financing providing the lowest interest rate are preferred, when all other factors remain equal. One of those other factors is the effect of shortterm financing on the credit rating of a firm. Trade credit is a source of shortterm financing for business firms. It is a quite legitimate source of shortterm financing,
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Some common words found in the essay are:
Brealey Myers, McGuigan Kretlow, William Glueck, Purchase Warrants, Alexander Arnold, LBOs Worthy, Michael McCaskey, BenHorim Levy, MARKETS Longterm, Advisory Service, strategic planning, common stock, common stocks, market value, stock purchase, convertible security, junk bonds, value convertible, external environment, junk bond, junk bond market, stock purchase warrant, strategic planning process, taggart alexander arnold, alexander arnold 1991,
Approximate Word count = 10057
Approximate Pages = 40 (250 words per page)

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