East Coast Yachts Assignment Example | Topics and Well Written Essays - 500 words

East Coast Yachts - Assignment Example In the traditional method, usually the institutional and large investors are involved while the Dutch auction process facilitates small investors to participate in the bid. Advantage with the Dutch auction is that the process can fetch price of the share close to its market value at lower expense. Hence East Coast Yachts needs to go for a Dutch auction to go public. The optimal size of the IPO can be calculated by assessing true needs of funds for at least 2 years of future operations after ongoing expansion. Raising $100 million when the company currently needs only $75 million means ECY will have advantage of increased liquidity or cushioning to face liquidity crunch that may arise due to unforeseen circumstances in the business. However, in this process the company’s equity base will increase by 33% putting unnecessary pressure on the company’s earnings per share. This is disadvantageous because lower earnings per share will fetch lower market price assuming same P/E ratio for ECY. After all, efficient financial management is a critical need for any company to enhancing operational performance hence cushioning of 5-10% is fine while raising money in public but raising $100 million (33% higher than current requirement) is certainly detrimental to the long-term financial health of the company (Dutch Auction IPO vs. Traditional Bo ok Building, 2013). It is pertinent to note that the company already provides audited financial statements to the SEC as part of its bond indenture incurring expenses of $325,000, however, that needs not to be counted as necessary expenses for this IPO. Crowe & Mallards will charge 7% as underwriting commission to the total issue of $85 million that will take away $ 5.95 million leaving $79.05 from the fund collected. While deducting above mentioned expenses of $2,543,500 the company will have

Annotated Bibliography Essay Example | Topics and Well Written Essays - 1500 words

Annotated Bibliography - Essay Example In so much, the authors of this particular article present a well-balanced approach to the topic that is been exhaustively studied and analyzed by a variety of different scholars of the past decade. In determining the way in which future actions with regards to technology should take place, an understanding of the key relationship between the human and his/her prosthetic is a vital component which must be understood prior to any informed level of understanding or ideals concerning future dynamics taking place. Gentile, Douglas A., Sarah M. Coyne, and Francesco Bricolo. "Pathological Technology Addictions: What Is Scientifically Known And What Remains To Be Learned." The Oxford handbook of media psychology. 382-402. New York, NY US: Oxford University Press, 2013. PsycINFO. Web. 4 July 2013. ... c to individuals with genetic markers, the given research article promotes the understanding that a predisposition to technological addiction may exist within a certain subset of the society as well. This is an important understanding to integrate with due to the fact that the broad majority of the research which is been conducted on this particular topic seeks to approach the issue from something of a one dimensional aspect. However, once the researcher is able to delineate and understand the fact that not each and every individual within society will be impacted upon the same level with regards technological addiction, and more fair and balanced approach to understanding this particular topic is able to be engaged. Hodis, Monica A., and Gordon C. Bruner II. "Technology Addiction: An Exploratory Study Of The Negative Impact Of Technology On Consumer Welfare." Advances In Consumer Research 36.(2009): 840-842. Business Source Complete. Web. 4 July 2013. Although technological addictio n has an impact upon each and every aspect of an individual’s life, it is oftentimes the case that technological addiction, within the realm of scholarship and research is only understood through the context of psychology and/or sociology. Although true that these two aspects are perhaps the most important means of integrating an understanding of this particular topic, it should also be noted that key understandings and applicable approaches within the realm of business also exist. Within the early stages of technological proliferation within the world, but a few decades ago, marketers and businesses sought desperately to integrate with consumers via this new medium. However, this particular article discusses the means by which technological overdependence is not only harmful to the