Raising Extra Capital
As companies mature, their business needs change. This typicallycauses the need to raise extra capital to begin an expansionproject. An influx of capital funding may be necessary to constructor purchase a new structure, testing and developing new products, amerger, acquisition, or take over. Nevertheless, the business mayseek to acquire capital from ether a debt or equity IPOoffering.
- If you owned a large company and needed capital for a majorinternational expansion project would you prefer to do an IPO stockoffering or corporate bond offering and why?
- Explain the pros and cons of an IPO stock offering (equity) orcorporate bond offering (debt).
