Problem:
Base on VISA IPO in 2008 (the credit card company)
A. A brief overview of the company's current financial position and its IPO
B. please assess the company's motivation for the decision of undergoing IPO - is it economical? with theories/ sources
Analyse the financing mix: debt? equity? rational? with the tools of WACC, CAPM, MMM theory, Rate of Return , net present value, payback period, Profitability Index etc. other tools that is applicable to analyse Visa' financing mix
1. Please pick 3 of the tools to calculate - please attached steps of calculations.
2. Please provide an analysis as what does the results of the calculations mean in an investor point of view.
3. Explain and annotate financing mix of VISA.
3. WACC calculation can be done in here: https://thatswacc.com/ , entering the ticker symbol 'V'.
4. Detailed financial information can be found on bloomberg.com.
C. Briefly in bullet points, evaluate the outcome of visa ipo - did it increase the market value of corporation? Did it clear the debts?