Questions from Entrepreneurial Finance


Q: Describe how cash budgets and projected financial statements could be used in

Describe how cash budgets and projected financial statements could be used in estimating how far $360 million could take Chipotle after its first 14 restaurants.

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Q: Identify and describe the four-step process typically used to forecast

Identify and describe the four-step process typically used to forecast sales for seasoned firms.

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Q: What are the three steps typically used to forecast sales for early

What are the three steps typically used to forecast sales for early-stage ventures?

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Q: Describe the general relationship between the life cycle stage and the ability

Describe the general relationship between the life cycle stage and the ability to accurately forecast sales for a firm.

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Q: How do venture investors adjust for the belief that entrepreneurs tend to

How do venture investors adjust for the belief that entrepreneurs tend to be overly optimistic in their sales forecasts?

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Q: What is meant by a sustainable sales growth rate?

What is meant by a sustainable sales growth rate?

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Q: Identify and describe the two equations that can be used to estimate

Identify and describe the two equations that can be used to estimate a firm’s sustainable growth rate.

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Q: You have been retained as a consultant for Lovely Touch and tasked

You have been retained as a consultant for Lovely Touch and tasked with assessing the financial viability of their commercial ventures. What types of financial ratios would you enlist in your report...

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Q: Describe the basic additional funds needed (AFN) equation.

Describe the basic additional funds needed (AFN) equation.

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Q: Describe how pseudo dividends are used in the equity valuation method.

Describe how pseudo dividends are used in the equity valuation method.

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