Economics Homework Help

Complete the Chapter 18 Mini-case on page 788 in your textbook. After reading the case, you will complete questions 1-4 only. In addition to your textbook, please provide at least three scholarly sources to support your answers.

Mini Case

• Randy’s,      a family-owned restaurant chain operating in Alabama, has grown to the      point that expansion throughout the entire Southeast is feasible. The      proposed expansion would require the firm to raise about $18.3 million in      new capital. Because Randy’s currently has a debt ratio of 50% and because      family members already have all their personal wealth invested in the      company, the family would like to sell common stock to the public to raise      the $18.3 million. However, the family wants to retain voting control. You      have been asked to brief family members on the issues involved by      answering the following questions.
  1. What agencies regulate securities markets?
  2. How are start-up firms usually financed?
  3. Differentiate between a private placement and a public       offering.
  4. Why would a company consider going public? What are       some advantages and disadvantages?