《taiwan财务管理_lecture14(ch14)bath.pptx》由会员分享，可在线阅读，更多相关《taiwan财务管理_lecture14(ch14)bath.pptx（12页珍藏版）》请在taowenge.com淘文阁网|工程机械CAD图纸|机械工程制图|CAD装配图下载|SolidWorks_CaTia_CAD_UG_PROE_设计图分享下载上搜索。
1、The McGraw-Hill Companies,Inc.,200114-1Irwin/McGraw-HillIrwin/McGraw-HillChapter 14Fundamentals of Corporate FinanceThird EditionHow Corporations Issue SecuritiesBrealey Myers Marcusslides by Matthew WillIrwin/McGraw-HillThe McGraw-Hill Companies,Inc.,2001The McGraw-Hill Companies,Inc.,200114-2Irwin
2、/McGraw-HillTopics CoveredVenture CapitalThe Initial Public OfferingThe UnderwritersGeneral Cash OffersThe Private PlacementThe McGraw-Hill Companies,Inc.,200114-3Irwin/McGraw-HillVenture CapitalSince success of a new firm is highly dependent on the effort of the managers,restrictions are placed on
3、management by the venture capital company and funds are usually dispersed in stages,after a certain level of success is achieved.Venture CapitalMoney invested to finance a new firmThe McGraw-Hill Companies,Inc.,200114-4Irwin/McGraw-HillVenture CapitalThe McGraw-Hill Companies,Inc.,200114-5Irwin/McGr
4、aw-HillVenture CapitalThe McGraw-Hill Companies,Inc.,200114-6Irwin/McGraw-HillInitial OfferingInitial Public Offering(IPO)-First offering of stock to the general public.Underwriter-Firm that buys an issue of securities from a company and resells it to the public.Spread-Difference between public offe
5、r price and price paid by underwriter.Prospectus-Formal summary that provides information on an issue of securities.Underpricing-Issuing securities at an offering price set below the true value of the security.The McGraw-Hill Companies,Inc.,200114-7Irwin/McGraw-HillInitial OfferingAverage Expenses o
6、n 1767 IPOs from 1990-1994The McGraw-Hill Companies,Inc.,200114-8Irwin/McGraw-HillThe UnderwritersThe McGraw-Hill Companies,Inc.,200114-9Irwin/McGraw-HillThe UnderwritersThe McGraw-Hill Companies,Inc.,200114-10Irwin/McGraw-HillGeneral Cash OffersSeasoned Offering-Sale of securities by a firm that is
7、 already publicly traded.General Cash Offer-Sale of securities open to all investors by an already public company.Shelf Registration-A procedure that allows firms to file one registration statement for several issues of the same security.Private Placement-Sale of securities to a limited number of in
8、vestors without a public offering.The McGraw-Hill Companies,Inc.,200114-11Irwin/McGraw-HillRights IssueRights Issue-Issue of securities offered only to current stockholders.Example-YRU Corp currently has 9 million shares outstanding.The market price is$15/sh.YRU decides to raise additional funds via
9、 a 1 for 3 rights offer at$12 per share.If we assume 100%subscription,what is the value of each right?The McGraw-Hill Companies,Inc.,200114-12Irwin/McGraw-HillRights IssueCurrent Market Value=9 mil x$15=$135 milTotal Shares=9 mil+3 mil=12 milAmount of new funds=3 mil x$12=$36 milNew Share Price=(136+36)/12 =$14.25/shValue of a Right=15-14.25=$0.75Example-YRU Corp currently has 9 million shares outstanding.The market price is$15/sh.YRU decides to raise additional funds via a 1 for 3 rights offer at$12 per share.If we assume 100%subscription,what is the value of each right?