Questions from Entrepreneurial Finance


Q: What is meant by (a) NOPAT, and (b

What is meant by (a) NOPAT, and (b) EBIAT? How do they compare with each other?

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Q: How do debt investors get paid in the enterprise method?

How do debt investors get paid in the enterprise method?

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Q: Why is the conversion feature in convertible preferred important for venture investors

Why is the conversion feature in convertible preferred important for venture investors?

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Q: What is meant by a (a) full ratchet clause,

What is meant by a (a) full ratchet clause, and (b) down (reset) round?

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Q: What is the meaning of harvesting a venture?

What is the meaning of harvesting a venture?

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Q: What is meant by due diligence? How does a traditional registration

What is meant by due diligence? How does a traditional registration differ from a shelf registration?

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Q: When an investment banking firm decides whether to underwrite or market a

When an investment banking firm decides whether to underwrite or market a securities issue, what is meant by a firm commitment and best efforts?

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Q: Describe the two following terms that may be involved in underwriting a

Describe the two following terms that may be involved in underwriting a new securities issue: (a) green shoe and (b) lockup provision.

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Q: What is meant by initial public offering (IPO) underpricing?

What is meant by initial public offering (IPO) underpricing?

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Q: What evidence exists as to whether entrepreneurs think about and/or

What evidence exists as to whether entrepreneurs think about and/or develop exit strategies?

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