This is a case analysis relative to Financial Management. The case is a
formal paper 5 to 8 pages long (double spaced with Time New
Romans Font 12 excluding title page and references). The paper
should be formatted using APA style
(http://owl.english.purdue.edu/owl/resource/560/01/).
Jagdambay Exports (http://www.jagdambayexports.com/), a
manufacturer and exporter of Baby Wears Garments, is considering
going public to raise funds to expand in USA. The Chief Financial
Officer (CFO) of Jagdambay Exports has approached the investment
banking firm at which you work seeking help with its decision. Your
boss asked you to explain the nature of the U.S. financial markets and
the process of issuing equity to the CFO of Jagdambay Exports.
To help with this task, your boss has asked you to explain some
things regarding the U.S. financial system to CFO of Jagdambay
Exports:
– Explain the components of a financial market and its relevance
to Jagdambay Exports. Be explicit and explain to the CFO how
financial markets differ from markets for physical assets and
why that difference matters to Jagdambay Exports.
– Explain the relevance of money markets and capital markets for
Jagdambay Exports.
– Analyze Jagdambay exports and advise how the CFO should
consider the primary market and secondary market in the
expected transaction. Base your advice, in part, upon the fact
that the CFO informed of two things:
a) Jagdambay exports decided to issue additional common
stock, and
b) An investor purchased 1,000 shares of this common
stock from the underwriter (Merrill Lynch).
– Advise the CFO on three primary ways in which capital may be
transferred between savers and borrowers in Jagdambay
Exports. Explain the advantages and disadvantages of each
within the organization.
– Advise the CFO on securities trading on physical exchanges or
over-the-counter market. Base your analysis upon what you
know about Jagdambay Exports and discuss why you advise
one method over the other.
– Summarize the U.S. financial system advice to the CFO and
provide a timeline of expected outcomes based on your advice.
(This should be no more than a paragraph or two).
– Finally, write 2 -3 sentences about what you learned regarding
the U.S. financial system based upon this assignment.
