Given the risk, what would motivate an investor to purchase ...
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Given the risk, what would motivate an investor to purchase
stock in Gogo?
seen those sales decline in a critical period when even the most robust travelrelated industries are experiencing major contraction. At the end of 2019, Gogo was already running short of cash, having used up the proceeds from its 2013 public offering to invest in the 2Ku initiative and further endangering its already precarious market position. Gogo is certainly poised to be part of the packages that airlines have already begun to offer travelers in mid-2020 to tempt them back to the skies, but it's hard to tell if Gogo will be able to recoup its losses and achieve its badly needed turnaround. Questions for Dscussion 17-29. Given the risk, what would motivate an investor to purchase stock in Gogo? 17-30. Why would Gogo sell stock rather than taking on additional debt financing? Do you think this was a good decision? 17-31. What role did underwriters, such as Morgan Stanley, JPMorgan, and UBS, play in the Gogo IPO? 17-32. Using a Web source, such as Yahoo! Finance or www.nasdaq.com, obtain the current price of Gogo stock. What has happened to the price of the stock over the past 6 months? What about the past 2 years? What do you predict will happen in the future, and why? 17-33. Would you invest in Gogo right now? Why or why not
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