East coast yachts goes public

East Coast Yachts Goes Public

Because of the company is unknown, do not have reputation, this price will be too high for investors and they do not prefer to buy these shares. To sell the stock, the employees can tender their shares to be sold in the IPO at the offering price, or the employees can retain their stock and sell it in the secondary market after East Coast Yachts goes public once the day lockup period expires.

From a different viewpoint, owners of the company has to consider market risk. Larissa asks you to advise the employees about which option is best. The expenses in the case of Dutch Auction IPO will be quite less as compared to traditional IPO as the role of investment banker in this scenario is minimized.

Larissa asks you to advise the employees about which option is best. Well known and fairly large companies such as Google have successfully used Dutch Auction IPO method because the reputation and awareness about Google was huge.

Ignoring underpricing, how much will the IPO cost the company as a percentage of the funds received? Dutch auction is advantageous for small investors because the final bidding price become the market value of a company and they can purchase the share easily. The company has been experiencing fast growth, and the future looks like clear sailing.

However, Larissa points out that if the company needs more cash soon, a secondary offerings close to IPO would be potentially problematic. Many of the employees of East Coast Yachts have shares of stock in the company because of an existing employee stock purchase plan. What would you suggest to the employees?

However, the investment return is likely to be substantially less than it would be for a traditional IPO. She is unsure of the costs of the audit. In my opinion, East Coast Yachts company should use Dutch Auction because of lower underwriting fees. How can we calculate the optimal size of the IPO?

Robin begins by telling Larissa and Dan about the process. To sell the stock, the employees can tender their shares to be sold in the IPO at the offering price, or the employees can retain their stock and sell it in the secondary market after East Coast Yachts goes public once the day lockup expires.

She is unsure of the costs of the audit.

However, Larissa points out that if the company needs more cash soon, a secondary offering close to the IPO would be potentially problematic. Should the company go public with a Dutch auction or use a traditional underwritten offering? Therefore, East Coast Yachts would really need to weigh the pros and cons the Dutch Auction IPO by evaluating its brand reputation and awareness among small investors.

If I was an employee in Facebook, in very first day of the public offering, I try to sell my Facebook shares, because there were no negative comments, criticism or speculations exist in the market and the value of a firm is still high and I can make profit from very beginning of the IPO process.

The price of per share will increase of course it depends of number of shares and it will increase value of the company. The company has been experiencing fast growth, and the future looks like clear sailing.

As we learn in our finance courses, we try to maximize firms profit to increase the value of the firm. She is unsure of the costs of the audit. To sell the stock, the employees can tender their shares to be sold in the IPO at the offering price, or the employees can retain their stock and sell it in the secondary market after East Coast Yachts goes public once the day lockup expires.'Modern Financial Management' I need someone assistance to answer the solution for the mini case in the attached document.

East Coast Yachts Goes Public Larissa Warren and Dan Ervin have been discussing the future of East Coast.

Solution To Mini Case East Coast Yatch Goes Public. EAST COAST YACHTS 1. East Coast Yachts Company Case Study Group 4 Julie Ciarlante Mary Kathryn LoConte Ivy Perez David Zhu East Coast Yachts Background • ECY started in as a Limited Liability Company (LLC) with the mission of creating custom, high performance yachts.

Answer to EAST COAST YACHTS GOES PUBLIC Larissa Warren and Dan Ervin have been discussing the future of East Coast Yachts. The com.

East Coast Yachts Goes Public Larissa Warren and Dan Ervin have been discussing the future of East Coast Yachts. The company has been experiencing fast growth. East Coast Yacht Sales specializes in the sale of quality pre owned boats. Call us today for more information on our extensive inventory of pre owned sail and power boats!

Financial Planning for East Coast Yachts. Prepared for East Coast Yachts. Prepared by Dan Ervin, Mary-Ann Lawrence, Kevin Klepacki, Katie Wilson, Andrew Wright.

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East coast yachts goes public
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