Assignment:
How do you think each of the following items would affect a company’s ability to attract new capital and the flotation costs involved in doing so?
a. A decision of a privately held company to go public.
b. The increasing institutionalization of the “buy side” of the stock and bond markets.
c. The trend toward “financial conglomerates” as opposed to stand-alone investment banking houses.
d. Elimination of the preemptive right.
e. The introduction of “shelf registrations” in 1981.
Provide complete and step by step solution for the question and show calculations and use formulas.