tailieunhanh - Lecture Essentials of corporate finance - Chapter 15: Raising capital

The topic discussed in chapter 15 is raising capital. This chapter include objectives: Understand the venture capital market and its role in financing new businesses, understand how securities are sold to the public and the role of investment bankers, understand initial public offerings and the costs of going public. | Raising Capital Chapter 15 Key Concepts and Skills Understand the venture capital market and its role in financing new businesses Understand how securities are sold to the public and the role of investment bankers Understand initial public offerings and the costs of going public 15- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance by Ross, Trayler, Bird, Westerfield & Jordan Slides prepared by Rowan Trayler Chapter Outline The Financing Life Cycle of a Firm: Early-Stage Financing and Venture Capital Selling Securities to the Public: The Basic Procedure Alternative Issue Methods Underwriters IPOs and Underpricing New Equity Sales and the Value of the Firm The Cost of Issuing Securities Issuing Long-Term Debt 15- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance by Ross, Trayler, Bird, Westerfield & Jordan Slides prepared by Rowan Trayler Venture Capital Private financing for relatively new businesses in exchange for shares in the firm Usually entails some hands-on guidance The ultimate goal is usually to take the company public and the VC will benefit from the capital raised in the IPO Many VC firms are formed from a group of investors that pool capital and then have partners in the firm decide which companies will receive financing Some large corporations have a VC division 15- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance by Ross, Trayler, Bird, Westerfield & Jordan Slides prepared by Rowan Trayler See the instructors manual for more information on some of the groups that provide capital for VC operations. One group that students may be particularly interested in is discussed in an article in the May 16, 2000 special issue of Inc. magazine. The article discusses a venture capital firm that received the majority of its financing from professional athletes (pp. 63 – 65). www: Click on the web surfer icon to go to the . | Raising Capital Chapter 15 Key Concepts and Skills Understand the venture capital market and its role in financing new businesses Understand how securities are sold to the public and the role of investment bankers Understand initial public offerings and the costs of going public 15- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance by Ross, Trayler, Bird, Westerfield & Jordan Slides prepared by Rowan Trayler Chapter Outline The Financing Life Cycle of a Firm: Early-Stage Financing and Venture Capital Selling Securities to the Public: The Basic Procedure Alternative Issue Methods Underwriters IPOs and Underpricing New Equity Sales and the Value of the Firm The Cost of Issuing Securities Issuing Long-Term Debt 15- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance by Ross, Trayler, Bird, Westerfield & Jordan Slides prepared by Rowan Trayler Venture Capital Private financing for relatively new businesses