b)

Mimi computer is a privately owned computer manufacturing company in Hong Kong. After three years of operation, the company is making a positive accumulated profit of $50 million and is now focusing on developing new products and services for the latest %G technology. Mimi computer is planning to raise a capital of $1000 million for its future business expansion. You are the financial manager of Mimi Computer. One day, the CEO of the company talked to you, there are three ways of raising capital for our future business development. We can raise the capital through the initial public offerings, venture capital and right offerings. What are the advantages and disadvantages for each method? Which one is suitable to us? What are the major considerations in selecting an appropriate method? Respond to your CEOs comment. Illustrate your answer with examples.