Questions from Entrepreneurial Finance


Q: What is a liquidity risk premium? What is a maturity risk

What is a liquidity risk premium? What is a maturity risk premium?

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Q: Name three of the common loan restrictions and explain their relation to

Name three of the common loan restrictions and explain their relation to new venturing financing. What are some additional common loan restrictions?

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Q: What is meant by venture banks? How do they differ from

What is meant by venture banks? How do they differ from traditional commercial banks?

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Q: What is the EB-5 immigrant visas program?

What is the EB-5 immigrant visas program?

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Q: How are put and call options similar? How are they different

How are put and call options similar? How are they different?

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Q: Why is price protection an issue when convertibles or warrants are used

Why is price protection an issue when convertibles or warrants are used?

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Q: Why is it important that convertible securities also be callable (redeemable

Why is it important that convertible securities also be callable (redeemable)?

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Q: Is the sale of an out-of-the-money

Is the sale of an out-of-the-money warrant a future sale of equity at a favorable price?

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Q: Why is the weighted average cost of capital (WACC) used

Why is the weighted average cost of capital (WACC) used as the discount rate in the enterprise method?

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Q: What is preferred stock? What is participating preferred stock, and

What is preferred stock? What is participating preferred stock, and what is meant by paid in kind (PIK) preferred stock?

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