Question Details

Apex Printing- executive team has indicated that an assessment of the project will be due in a week- 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 Apex,” 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- 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 to which the firm must adhere, as well.” 

“You know, sometimes it- 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.