In your groups, discuss the following questions about the CPC case. Each student must complete their...

 

Transcribed Image Text:

In your groups, discuss the following questions about the CPC case. Each student must complete their own written answers (in their own words) and submit their responses as this week's marked question (marked out of 20 points as part of the overall marked question score). If you do any research outside of the background information provided in the CPC case, make sure you cite your references in your homework submission. Questions: 1. What is a CPC? What are the benefits of using the CPC program? How does it differ from a traditional IPO? 2. What risks are involved in using the CPC program? 3. Model out the share structure of the CPC after it completes the hypothetical qualifying transaction described by Vigneault. What ownership stake will Vigneault and his partners retain? 4. What return would Vigneault realize on his original investment of seed money? 5. As Joseph Vigneault, would you proceed with setting up a CPC? In your groups, discuss the following questions about the CPC case. Each student must complete their own written answers (in their own words) and submit their responses as this week's marked question (marked out of 20 points as part of the overall marked question score). If you do any research outside of the background information provided in the CPC case, make sure you cite your references in your homework submission. Questions: 1. What is a CPC? What are the benefits of using the CPC program? How does it differ from a traditional IPO? 2. What risks are involved in using the CPC program? 3. Model out the share structure of the CPC after it completes the hypothetical qualifying transaction described by Vigneault. What ownership stake will Vigneault and his partners retain? 4. What return would Vigneault realize on his original investment of seed money? 5. As Joseph Vigneault, would you proceed with setting up a CPC?

Answer rating: 100% (QA)

1 A CPC or Controlled Private Company is a type of investment vehicle that is structured to provide certain benefits to the investors These benefits include a higher degree of control over the company ... View the full answer