INSTRUCTIONS
After reading Case 46: Ferrari: The 2015 Initial Public Offering, complete the following questions and post your responses.
- What does Ferrari gain from the IPO process?
Keep in mind that the responses should be well thought out value-added response to another student’s post.
ANSWERS
There are several gains for Ferrari from the IPO process. First, the company would increase its capital. Going public and selling a portion of its shares, Ferrari will raise funds, allowing the company to invest in research and development. Ferrari has been developing high-end class vehicles, and with increased capital, the company will be able to maintain or improve its high-performance car technology. Further, the company can also expand its production with increased capital, enabling it to explore new markets for its brands (xxx, xy). The company has a …. To access full answers, use the purchase button below.