Financial Management II: Discussion Question.
I don’t know how to handle this Management question and need guidance.
Locate a recent story from The Wall Street Journal or other reputable news source about a company that has gone public through an Initial Public Offering (IPO) within the last year.
- How did the company arrive at the valuation for the IPO? Yes, we know there is a little bit of “black magic” in coming up with the number, but what was said publicly by the CEO/CFO and/or the bank that took the company public to defend the initial stock price?
- Was the IPO price justified? How has the price changed since the IPO? Be sure to consider overall market and segment performance to support your position.
Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates’ initial posts by Sunday, midnight of your time zone.