Category: Investing and Financial markets

Read the above documents and the IPO book (e-copy available on Blackboard)
to answer the following questions. You may wish to use external
references/material from credible sources (such as financial press, journal
articles):
(i) An IPO marks a strategic milestone for a company.
(a) Explain the generic benefits and drawbacks of going public.
(b) What may have motivated Ferrari (Ticker symbol ‘RACE’) to go public?
(c) Why do you think Ferrari chose to list on New York Stock Exchange?
(d) What can you say about the primary and secondary shares sold in the
Ferrari IPO? (16 marks)
(ii) What is an IPO over-allotment (Greenshoe) option? Did Ferrari include such an
option in its IPO? (6 marks)
(iii) The underwriting investment bank takes on a central role in the IPO process.
(a) What are the key tasks executed by the underwriter?
(b) What are primary considerations when selecting an underwriter?
(c) Often, multiple underwriters are involved. In the case of Ferrari, a
syndicate of 7 underwriters was involved in the IPO. What are the main
motivations for syndication?
(d) How much compensation was paid to the underwriters of Ferrari? Do you
think it is comparable to the average compensation paid to underwriters in US
IPOs?
(e) What do you understand by ‘price-stabilization’ activities conducted by the
underwriter(s)? Do you think the underwriters were involved in pricestabilization of the Ferrari IPO? (25 marks)
(iv) Describe what happens during ‘book-building’ of an IPO. What price range was
used for book building of the Ferrari IPO? Why do you think Ferrari priced its offering
at the top end of the book-building range? (10 marks)
(v) Based on the information given in the case study and the IPO prospectus,
discuss the pricing of the Ferrari IPO. Would you have invested in Ferrari at this
price? (10 marks)
(vi) What are IPO lock-up agreements? Describe the lock-up agreement of the
Ferrari IPO. (5 marks)
(vii) The diagram below shows the performance of Ferrari shares from October 2015
to September 2019. The first day of public trading of RACE shares was 21 October
2015. Shares were sold in the IPO at an offer price of $52. More information on daily
share price movements is available in the Excel file (RACE shareprice). 
Based on a visual examination of the chart above, how does the performance of the
Ferrari IPO compare with average IPO performance documented by past empirical
studies
i. in terms of the short term (1st trading day)?
ii. and over the longer term (4 years)?
Past studies have suggested several explanations for short-run underpricing and
long-run underperformance of IPOs. Discuss the ones which you think are relevant
to Ferrari’s case? (16 marks)
(viii) In the light of the main theories of capital structure, provide a discussion of the
evolution of the capital structure of Ferrari since its IPO. You will find the Annual
Report 2018 helpful in answering this question

Weire a report including group presentation participation. YOU HAVE TO WRITE ABOUT SUMUP PART. CREATE A FINTECH COMPANY AND COVER THE FIOLLOWING ASPECTS : 
1) IDEA AND DESCRIPTION (read in a brief)
2 BUDGET (read in a brief) 

ABC Capital primarily invests in Web3 venture deals, and seeks to deploy capital across a number of investment
themes, including: 
▪ Infrastructure (i.e. L1s, L2s, Modular Blockchains) 
▪ Interoperability (i.e. Cross-chain, Bridging) 
▪ DeFi
Please select and research on one of the above investment themes, and pitch an investment idea related to your
chosen theme. Investment ideas should ideally be primary venture deals that are currently actionable for ABC Capital, though liquid investment ideas are also acceptable.
You are advised to present in the following manner: 
▪ Thesis around the chosen investment theme 
▪ Competitive landscape within the chosen investment theme 
▪ Investment target and rationale

Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project.
The learning objectives of this project are as follows:
Apply accounting concepts and standards to the creation of accounting information and reports.
Analyze accounting information used to make strategic business decisions.
Apply ethical behavior to accounting-related situations.
Make business decisions based on analyzing accounting data.
Using the Unit VII Final Project Template, prepare a four- to five-page written report (including spreadsheets) with at least three scholarly sources. Your report will provide the following information:
Introduction
Part 1: Based on the data presented in the Unit VII Spreadsheet Template in Excel (CM Breakeven tab):
Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
Calculate the weighted average CM.
Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.
Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.
Calculate the value of ending inventory under full or absorption costing.
Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.
Part 3: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.
As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order.
Part 4: Based on the data presented in the Unit VII Spreadsheet Template in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.
Additional information has come to your attention regarding the equipment purchase. One of the partner’s brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.
Part 5: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.
Part 6: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.
Calculate the material variances.
Calculate the labor variances.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.
Conclusion and Recommendations
Summarize the key observations that you have made about the cookie business based on the calculations you have performed, and present any future recommendations.
Be sure to use APA formatting throughout, and reach out to the Writing Center or the Library for assistance with research, writing, and formatting. Include at least two resources from the CSU Online Library in your report.

Weire a report including group presentation participation. YOU HAVE TO WRITE ABOUT SUMUP PART. CREATE A FINTECH COMPANY AND COVER THE FIOLLOWING ASPECTS a. category/area
b. expected time to Minimum Viable Product (MVP)/Proof Of Concept (POC) or to get
to the next stage of development (if MVP/POC has already been achieved)
c. the need you are solving or the challenge you are tackling
i. what is the business or consumer need, technological challenge or market
opportunity behind your innovation?
d. approach & innovation (competitive advantage)
i. what approach will you take where will the focus of the innovation be?
ii. what are your competitive advantages?
e. team & resources
i. who do you need in your team? and why?
ii. what are their roles and how many are they?
f. market awareness
i. what does the market you are targeting look like?
ii. competitors, new entrants, clients, suppliers, barriers to entry, substitutes,
…
iii. how big is this market (revenues of existing players)
g. outcomes & route to market
i. how are you going to sell your product/process?
ii. what is the long-term plan to grow the business?
h. project management
i. how will manage the project effectively?
ii. Timeline, phases, responsibilities, …
i. risks
i. what are the main risks for this idea/plan?
ii. possible mitigations?
j. a one-paragraph “elevator pitch” description
2. BUDGET (TO GET TO THE NEXT STEP OF DEVELOPMENT)
a. on an annual basis (although start-ups usually think in months or week planning, to
make things easy we require only annual budgets)
i. labour
ii. overheads
iii. materials
iv. sub-contractors
v. data
vi. pp&e
vii. ….
b. The budget will be the starting point to establish the funding sought