Phase 4 DB
Please do not use too many technical or big terms as I am only a very meek spoken person. Hopefully I am not asking too much when I ask for the sentence structuring to be correct and comprehensive, so that if there are mistakes I can fix them easily. And please use the correct in text citation method. APA, TNR 12.
A little bit about the company:
Apix Printing, Inc.
Apix Printing, Inc. is a private, domestic United States printer of periodicals, newspaper inserts, and advertising materials that accompany distributions of Sunday and weekday circulations of large metropolitan newspapers. The company, headed by chief executive officer (CEO) John Matthews, generates $450 million in revenues from three product lines (periodicals, inserts, and advertising) and has long-term contracts with several large U.S. retailers to produce weekly sales flyer inserts as well as metropolitan newspapers to produce Sunday magazine inserts and coupons. Its printing presses are characterized by offset print technology and are capable of high-capacity output; in addition, the company recently migrated to water-soluble inks, which considerably reduces manufacturing emissions.
The company’s executive team, employees, and above all, its vice president (VP) of Production, Luke Stewart, are committed to environmentally-sustainable manufacturing practices. Presently, the only substrate Apix uses is paper, specifically newsprint of various weights. Trim and waste are recycled in accordance with the company’s sustainability commitment. Manufacturing divisions are geographically aligned with customers’ locations to minimize logistics costs and response time to customer requirements; however, a centralized corporate entity administers functions such as human resources, information technology, and financial reporting. The VP of sales and administration, James Simeon, oversees administration and quality compliance among the various divisions. There are presently five manufacturing divisions: Northwest, Southwest, Northeast, Southeast, and Midwest.
Currently, Apix is only marginally profitable, and as such, the chief financial officer (CFO), Mary Francis, has indicated that external financing will be required to support a company expansion into a new segment of the printing sector: food packaging. This endeavor will require new investments in equipment as well as substrate inventory; promotional costs will also increase. In addition, Timothy Russell, the new Audit Committee Chair, has pointed out that the company’s compliance with the requirements of the Sarbanes-Oxley Act (SOX) will also cause administrative costs to increase. Following the requirements is paramount to successfully file a registration statement and to issue equity to shareholders in an initial public offering (IPO).
As the newly hired VP of finance, you report to the CFO. In this capacity, your responsibilities include preparation of financial statements, comparative analysis and benchmarking to sector performance, and the assessment of new business investment opportunities to grow Apix’s expansion endeavors in a challenging market.
The assignment:
The Apix Printing Inc. executive team has indicated that an assessment of the project will be due in a week’s time.
As you review your calendar for the coming week, you are reminded that the due date for an assessment of the expansion project is fast-approaching. Mary sees you in your office and walks in to talk.
“I’m glad I caught you in your office,” she says. “I’ve been thinking about the cost of issuing equity and debt because I know it will be burdensome for Apix,” says Mary. “On the other hand, we know that if we are to grow as a company, we must comply with the requirements of the Securities and Exchange Commission (SEC) and issue equity as well as debt.”
“It’s a big decision,” you agree. “Maybe it would help if I identified the costs of issuing equity as well as any advantages and disadvantages of engaging in this process. I could also isolate two primary compliance requirements, specifically those indicated by the SEC for an initial public offering (IPO) to which the firm must adhere, as well.”
“You know, sometimes it’s helpful to see things written down when making a big decision,” she says. “Thanks.”
For this discussion, identify the costs of issuing equity as well as any advantages and disadvantages of engaging in this process. Also, isolate 2 primary compliance requirements, specifically those indicated by the SEC for an initial public offering to which the firm must adhere.
Explain and illustrate the use of NPV and IRR in project valuation selection

Please try and use some of these Resources:
• Capital budgeting
Web reference recommended in text for supplemental capital budgeting information
• Hoover’s IPO page
Provides the latest IPOs recently accomplished
• More Capital Budgeting
Additional Web reference for supplemental capital budgeting information
• SEC Compliance
SEC Web site provides guidance for companies seeking to commit to IPO
• Venture Capital