Chapman Co. is a privately own

Chapman Co. is a

privately owned MNC in the United States that plans

to engage in an initial public offering (IPO) of stock so

that it can finance its international expansion. At the

present time, world stock market conditions are very

weak but are expected to improve. The U.S. market

tends to be weak in periods when the other stock

markets around the world are weak. A financial

manager of Chapman Co. recommends that it wait

until the world stock markets recover before it issues

stock. Another manager believes that Chapman Co.

could issue its stock now even if the price would be

low, since its stock price should rise later once world

stock markets recover. Who is correct? Explain.