[Get Solution] Audited Financial Statements

S&S Air Goes Public Mark Sexton and Todd Story have been discussing the future of S&S Air. The company has been experiencing fast growth, and the two see only clear skies in the company’s future. However, the fast growth can no longer be funded by internal sources, so Mark and Todd have decided the time is right to take the company public. To this end, they have entered into discussions with the investment bank of Crowe & Mallard. The company has a working relationship with Renata Harper, the underwriter who assisted with the company’s previous bond offering. Crowe & Mallard have assisted numerous small companies in the IPO process, so Mark and Todd feel confident with this choice. Renata begins by telling Mark and Todd about the process. Although Crowe & Mallard charged an underwriter fee of 4 percent on the bond offering, the underwriter fee is 7 percent on all initial stock offerings of the size of S&S Air’s offering. Renata tells Mark and Todd that the company can expect to pay about $1,800,000 in legal fees and expenses, $12,000 in SEC registration fees, and $15,000 in other filing fees. Additionally, to be listed on the NASDAQ, the company must pay $100,000. There are also transfer agent fees of $6,500 and engraving expenses of $520,000. The company should also expect to pay $110,000 for other expenses associated with the IPO. Finally, Renata tells Mark and Todd that to file with the SEC, the company must provide three years’ audited financial statements. She is unsure about the costs of the audit. Mark tells Renata that the company provides audited financial statements as part of the bond covenant, and the company pays $300,000 per year for the outside auditor. a. At the end of the discussion, Mark asks Renata about the Dutch auction IPO process. What are the differences in the expenses to S&S Air if it uses a Dutch auction IPO versus a traditional IPO? Should the company go public through a Dutch auction or use a traditional underwritten offering? b. During the discussion of the potential IPO and S&S Air’s future, Mark states that he feels the company should raise $75 million. However, Renata points out that if the company needs more cash in the near future, a secondary offering close to the IPO would be problematic. Instead, she suggests that the company should raise $90 million in the IPO. How can we calculate the optimal size of the IPO? What are the advantages and disadvantages of increasing the size of the IPO to $90 million? c. Many employees of S&S Air have shares of stock in the company because of an existing employee stock purchase plan. To sell the stock, the employees can tender their shares to be sold in the IPO at the offering price, or the employees can retain their stock and sell it in the secondary market after S&S Air goes public. What are the advantages and disadvantages of each option? Todd asks you to advise the employees about which option is best. What would you advise the employees? d. 5 years after IPO, S&S Air is planning to raise fresh equity capital by selling a large new issue of common stock. S&S Air is currently a publicly traded corporation, and it is trying to choose between an underwritten cash offer and a rights offering (not underwritten) to current shareholders. S&S Air management is interested in minimizing the selling costs and has asked you for advice on the choice of issue methods. What is your recommendation and why? Case write-ups should be 2 – 5 pages in MS word format (minimum 500 words without the questions), double-spaced, and 12 font size in Times New Roman. After answering ALL 4 questions (a, b, c, d), you will be able to find the total number of words at the status bar at the bottom of the Word window – Exclude the questions!!. APA citation for sources provided (With a minimum of 3 references, but no more than 10 references). The sources are of high quality (books, journal articles, reputable business magazines, professional association publications, government websites etc).

Struggling to find relevant content? Order a custom essay on
[Get Solution] Audited Financial Statements
Let our experts save you the hassle
Order Now
Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with GPA Fix
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Application Letters
Well written essay, will definitely use this service in the future.
Customer 452773, April 14th, 2022
Nursing
Excellent work! Thank you again!
Customer 452707, December 20th, 2022
Other
Great work! Thank so much!
Customer 452707, March 1st, 2022
Social Work and Human Services
Great Work !!!
Customer 452587, November 9th, 2021
Nursing
Perfect as usual!!! Thanks team!
Customer 452453, May 26th, 2021
Psychology
Excellent!!!!
Customer 452587, July 28th, 2021
Social Work and Human Services
Great Work!
Customer 452587, September 8th, 2021
Other
good
Customer 452813, June 30th, 2022
Social Work and Human Services
Excellent! Done earlier than needed and with more sources than needed! Great work!
Customer 452485, August 22nd, 2021
Social Work and Human Services
Excellent Work!
Customer 452587, August 24th, 2021
Professions and Applied Sciences
Thank you!
Customer 452707, March 4th, 2022
Technology
The paper is everything I needed and more. I will add a title and a cover page to it. Other than that the paper turned out excellent.
Customer 452885, October 17th, 2022
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
error: Content is protected !!

Save More. Score Better. Use coupon code SPECIAL for a 15%discount