Question : 44.If BST’s stock trades at $21.50 at the end of : 1325805

 

 

44.If BST’s stock trades at $21.50 at the end of the first trading day, what is the annual return on WIMMP’s investment?

a.51.81%

b.45.69%

c.35.26%

d.68.21%

 

 

 

45.Al Bert seeks $15 million from a VC fund. Al and the VC agree that the company should be ready to go public in 6 years. At that time the company should have a net income of $8.95 million. If comparable firms are expected to be trading at a P/E ratio of 18, what will be the company’s market capitalization at the time of the IPO?

a.$213.67 million

b.$142.25 million

c.$161.10 million

d.$123.78 million

 

 

 

46.Al Bert seeks $15 million from a VC fund. Al and the VC agree that the company should be ready to go public in 6 years. At that time the company should have a market capitalization of $161.1 million. If the VC requires a 45% return on their investment, what is the VC’s stake at the time of the IPO?

a.$139.41 million

b.$21.75 million

c.$112.67 million

d.$156.23 million

 

 

 

47.Al Bert seeks $15 million from a VC fund. Al and the VC agree that the company should be ready to go public in 6 years. At that time the company should have a market capitalization of $161.1 million. If the VC requires a 45% return on their investment, what is the fraction of the firm that the VC fund will receive for its $15 million investment?

a.69.32%

b.13.46%

c.56.89%

d.86.54%

 

 

 

 

48.“ALOTACASH” Venture Capital Fund wants to average a 45% return on its investments. Of the 12 total investments 3 have failed (i.e a return of -100%), and 6 generated a zero return. Two other projects yielded a return of 70% and 83%, respectively. What has to be the return on the last outstanding investment in order for “ALOTACASH” to reach its investment goal?

a.852%

b.358%

c.687%

d.152%

 

 

 

49.“ALOTACASH” Venture Capital Fund wants to average a 45% return on its investments. Of the 12 total investments 3 have failed (i.e a return of -100%), and 6 generated a zero return. What has to be the average return on the last three outstanding investment in order for “ALOTACASH” to reach its investment goal?

a.280%

b.840%

c.460%

d.625%

 

 

 

50.“ALOTACASH” Venture Capital Fund currently has its money tied up in 12 investments. Of those investments 3 are expected to fail (i.e a return of -100%), and 6 are expected to generate a zero return. The three remaining projects are supposed to yield a return of 70%, 83% and 167%, respectively. What is the average return on “ALOTACASH”s investments?

a.12.68%

b.-4.57%

c.8.93%

d.1.67%

 

 

 

51.What is considered the leading cause(s) of the death of young entrepreneurial firms?

a.not enough customers

b.too many customers

c.too much cash

d.both (a) and (b)

 

 

 

52.Which of the following is not a difference between entrepreneurial finance and “ordinary” finance?

a.entrepreneurial companies generally have faster growth than ordinary companies

b.most of the assets of entrepreneurial companies are often intangible assets

c.entrepreneurial companies must attract, motivate, compensate, and retain highly skilled technical and entrepreneurial talent with minimal cash flow

d.none of the above

 

 

 

53.Which of the following is the most likely method of financing for a high technology entrepreneurial firm?

a.equity

b.mortgage bonds

c.debentures

d.junk bonds