The Apix Printing Inc. executive team has indicated that an assessment of the project will be due in a week’s time.
As you review your calendar for the coming week, you are reminded that the due date for an assessment of the expansion project is fast-approaching. Mary sees you in your office and walks in to talk.
“I’m glad I caught you in your office,” she says. “I’ve been thinking about the cost of issuing equity and debt because I know it will be burdensome for Apix,” says Mary. “On the other hand, we know that if we are to grow as a company, we must comply with the requirements of the Securities and Exchange Commission (SEC) and issue equity as well as debt.”
“It’s a big decision,” you agree. “Maybe it would help if I identified the costs of issuing equity as well as any advantages and disadvantages of engaging in this process. I could also isolate two primary compliance requirements, specifically those indicated by the SEC for an initial public offering (IPO) to which the firm must adhere, as well.”
“You know, sometimes it’s helpful to see things written down when making a big decision,” she says. “Thanks.”
For this discussion, identify the costs of issuing equity as well as any advantages and disadvantages of engaging in this process. Also, isolate 2 primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm must adhere.