NETSCAPE_memo_521_2011

NETSCAPE_memo_521_20 - NETSCAPE QUESTIONS(due in class 1 Why are investors excited about Netscape What is Netscapes business model What must

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1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces? 2. What/who have been the past sources of capital for Netscape and how much capital did they provide? 3. What is the ownership structure at the time of the IPO (who are the primary owners)? Why do the ownership shares not correspond to the initial investments (the ratio of initial investment to ownership share is not the same for each investor)? 4. What are the possible sources of future financing for Netscape? 5. What are the advantages and disadvantages of having an IPO? 6. What should be the offering price for Netscape’s stock ($28, the original $14, or something else)? Why? Value Netscape with the discounted free-cash-flow methodology under three different scenarios (see second page). Assume there will be 38 million shares of Netscape stock outstanding after the IPO.
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This note was uploaded on 01/02/2012 for the course FINANCE 347 taught by Professor Bayou during the Fall '11 term at NYU.

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NETSCAPE_memo_521_20 - NETSCAPE QUESTIONS(due in class 1 Why are investors excited about Netscape What is Netscapes business model What must

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