{"id":118407,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/financing-internation-operations-prada"},"modified":"2017-08-12T06:56:11","modified_gmt":"2017-08-12T06:56:11","slug":"financing-internation-operations-prada","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/financing-internation-operations-prada\/","title":{"rendered":"Financing Internation Operations-Prada"},"content":{"rendered":"<p><b>Topic 1. &nbsp;Financing International Operations: Prada&#8217;s Foreign IPO<\/b><\/p>\n<p>Most multinational companies (MNCs) secure equity funding in their home countries; however, some may choose a global IPO in which \u201cthey can simultaneously access equity from multiple countries\u201d (Madura, 2015, p. 523).&nbsp; In placing the stock, these MNCs focus on a few countries where they have large subsidiaries that require financing.&nbsp; The MNC\u2019s stock is listed on a foreign exchange in the foreign country and is denominated in its local currency allowing investors to trade their stocks there.&nbsp; The local investors will only purchase stocks in a global IPO if the MNC offers a large number of stocks locally as this ensures a more liquid and active local secondary market for the stock, makes trading them easier for the local investors (Madura, 2015).<\/p>\n<p><b>Based on the required readings and research, discuss:<\/b><\/p>\n<ul>\n<li>Why did Prada need additional capital?<\/li>\n<li>Why did Prada choose to issue its IPO in Hong Kong? What were&nbsp;the advantages and disadvantages of doing so?<\/li>\n<li>What circumstances might make a foreign IPO ineffective for a company like Prada?<\/li>\n<li>What other financing options were available to Prada?<\/li>\n<li>What currency exposure risks did Prada face? How could the company have hedged against them?<\/li>\n<li>For a family-owned private company such as Prada, how did the dilution effect of the IPO impact their control of the company?<\/li>\n<\/ul>\n<p><b>Sources used in the development of the Prada Mini Case Study (not required reading!):<\/b><\/p>\n<p>Daniel, J.D., Radebaugh, L.H., &amp; Sullivan, D. P. (2015).&nbsp;International business&nbsp;(15th ed.). Upper Saddle River, NJ: Pearson Education<\/p>\n<p>Madura, J. (2015).&nbsp;International financial management&nbsp;(12th ed.).&nbsp; Stamford, CT: Cengage Learning<\/p>\n<p>600 words Due 9:00pm today**&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topic 1. &nbsp;Financing International Operations: Prada&#8217;s Foreign IPO Most multinational companies (MNCs) secure equity funding in their home countries; however, some may choose a global IPO in which \u201cthey can simultaneously access equity from multiple countries\u201d (Madura, 2015, p. 523).&nbsp; <a href=\"https:\/\/www.benedictsol.com\/blogs\/financing-internation-operations-prada\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-118407","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/118407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=118407"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/118407\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=118407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=118407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=118407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}