Question : It’s Gonna Be Big (IGBB) It’s Gonna Be Big (IGBB) seeking : 1325802

 

 

It’s Gonna Be Big (IGBB)

It’s Gonna Be Big (IGBB) is seeking venture capital investment of $8 million. The founder and the venture capital fund agree the firm is worth $15 million today, and the venture capital investor asserts it requires a 35% (compounded annually) expected return. IGBB and the venture capital investor foresee an IPO in four years, at which time IGBB is expected to be valued at $90 million.

 

17.What share of IGBB’s equity is necessary for the venture capital investor to achieve its required return?

a.45%

b.40%

c.35%

d.30%

 

 

 

18.If the venture capital investor pushes for a 40% per year expected return, what share of IGBB’s equity will it receive in exchange for its $8 million investment?

a.34%

b.39%

c.30%

d.26%

 

 

 

19.Suppose the venture capital investor’s share of the equity in IGBB is 25%, and that in four years at the IPO the firm is valued at $120 million. What annual (compounded) return did the venture capital investor earn?

a.46%

b.39%

c.30%

d.26%

 

 

 

Pickswinners Venture Fund

Pickswinners Venture Fund invested $10 million five years ago in Robotronics Co. The fund received 6 million shares of convertible preferred stock, each of which can be converted into three shares of common stock. Robotronic is now set to complete an IPO, and its shares are being priced at $40 each. Pickswinners will convert its preferred stock to common at the IPO, and will sell its shares along with Robotronic. The investment banking firm handling the IPO will charge an 8% underwriting fee.

 

20.If Pickswinners’ common stock position represents 40% of Robotronics equity, how many shares are being offered in the IPO?

a.15,000,000

b.18,000,000

c.25,200,000

d.45,000,000

 

 

 

21.What proceeds does Pickswinners expect to receive?

a.$662,400,000

b.$220,800,000

c.$720,000,000

d.$552,000,000

 

 

 

22.What is the annual (compounded) return on Pickswinners’ investment?

a.13%

b.31%

c.131%

d.231%

 

 

 

23.Palooka Products negotiates a venture capital investment contract, receiving $5 million today, with the expectation that the firm will seek an IPO in five years with an expected value of $50 million. If the venture capital investor requires a 40% expected return, what share of Palooka Products’ equity does it accept in exchange for its $5 million investment?

a.54%

b.38%

c.26%

d.14%

 

 

 

24.China has one of the fastest growing and potentially largest economies in the world, yet there is very little or no private equity investment. Why?

a.There are not enough attractive investment opportunities yet.

b.Basic contracting and property rights issues cannot be legally supported or enforced at this time.

c.Stock market growth provides more than enough funding.

d.None of the above.

 

 

 

25.Which country shows a great potential for future private equity investment?

a.Canada

b.China

c.India

d.Japan

 

 

 

26.The financing provided for equity investments in rapidly growing private companies is called

a.venture capital

b.junk bonds

c.initial public offerings

d.none of the above

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more