Money Oriented

From the Pecking Order Theory

The theory said that if the internal financing does not enough, the company can ise the external financing :
• Issues debt (bond).
• Issues preferred stock.
• Issues common stock.
From the theory above, as the financial condition from year 2004 till 2008 is getting better and better, the company doesn’t need to issues the common stock any longer. That’s why the company will go private. The way the company going private is by increasing the stock price so the stock buyers will not buy the stock.