Applied Corporate Finance Assignment

The below assignment has to be handed-in by 3:00 pm on the

___________Instructions on how upload a soft copy on the turnitin.com
website will be intimidated later; you are expected to retain a soft copy of
the assignment till the end of the semester. The penalty for
plagiarizing from any source without proper referencing (Use
Harvard referencing with a bibliography at the end) is zero (0) in
all the assignments. If you want to test the assignment on your
own, turnitin charges a $5 fee for students to receive plagiarism
analysis before handing in the final copy.
The total weighting for this assignment toward your final grade is five (5)
percent.
For this assignment, you should at least use the lecture notes, textbook
and the research papers in this folder. I would also advise doing your own
research on the internet as well. If you need to use additional papers, you
send the title of the paper you need to the library for procurement. The
word limit is at least 2000 words with no max limit. Marks will be
deducted for grammatical, spelling, presentation, punctuation and logical
mistakes. After finishing the assignment you should at least read it three
(3) times yourself and have someone else read it too for errors.
Please
email
me
asif.malik@nu.edu.pk

for

any

further

clarification.

Question A: The IPO process is characterized by information

asymmetries. Explain how these asymmetries may be reduced through
the book-building process.
Question B: Researchers have noticed that IPOs tend to be underpriced
in the short-term and to under-perform in the long-term. Explain how
under-pricing is measured in empirical studies and explain why these
phenomena of under pricing in the short-term and under-performing in
the long-term are observed.
Question C: Explain the three ways in which an overseas company can
obtain a listing in the American Markets. Why might a company seek to
list abroad?
Question D: Companies that want to list on stock exchanges need to
fulfill certain financial requirements (value of firm, minimum revenue etc.)
and requirements related to board of directors (number of independent
directors etc. List these requirements in detail for listing on the Karachi
Stock Exchange (KSE) and the New York Stock Exchange (NYSE). Also
explain how the requirements about the board of directors for NYSE may
counter the Principle-Agent problem.