Questions from Corporate Finance

Q: What are some of the things that the founder of a company

What are some of the things that the founder of a company must do to launch a new business?

Q: You are using the FCFF approach to value a business. You

You are using the FCFF approach to value a business. You have estimated that the FCFF for next year will be $123.65 million and that it will increase at a rate of 8 percent for each of the following f...

Q: You want to estimate the value of a privately owned restaurant that

You want to estimate the value of a privately owned restaurant that is financed entirely with equity. Its most recent income statement is as follows: Revenue ……………………………………………………. $3,000,000 Cost of g...

Q: A few years ago, a friend of yours started a small

A few years ago, a friend of yours started a small business that develops gaming software. The company is doing well and is valued at $1.5 million based on multiples for comparable public companies af...

Q: You plan to start a business that sells waterproof sun block with

You plan to start a business that sells waterproof sun block with a unique formula that reduces the damage of UVA radiation 30 percent more effectively than similar products on the market. You expect...

Q: For the previous question, assume that you do not have sufficient

For the previous question, assume that you do not have sufficient savings to cover the entire amount required to start your sun-block business. You are going to have to get external financing. A local...

Q: Your friend is starting a new company. He wants to write

Your friend is starting a new company. He wants to write a business plan to clarify the company’s business outlook and raise venture capital. Knowing that you have taken this course, he has asked you,...

Q: A friend of yours is trying to value the equity of a

A friend of yours is trying to value the equity of a company and, knowing that you have read this book, has asked for your help. So far she has tried to use the FCFE approach. She estimated the cash f...

Q: Forever Youth Technology is a biochemical company that is two years old

Forever Youth Technology is a biochemical company that is two years old. Its main product, an antioxidant drink that is supposed to energize the consumer and delay aging, is still under development. T...

Q: Mad Rock Inc. is a company that sells mp3 music online

Mad Rock Inc. is a company that sells mp3 music online. It is expected to generate earnings of $1 per share this year after its Web site is upgraded and online marketing is stepped up. Given the popul...