Questions from Entrepreneurial Finance


Q: The NetCare Company, which operates living assistance facilities, is planning

The NetCare Company, which operates living assistance facilities, is planning to issue or sell shares of stock to “accredited investors.” Briefly explain whether each of the following individuals woul...

See Answer

Q: The CareAssist Company, a web-based provider of information for

The CareAssist Company, a web-based provider of information for the elderly, is planning to sell $4 million in securities. Management is trying to decide which, if any, securities laws must be compli...

See Answer

Q: Three Rules (504, 505, and 506) under Regulation

Three Rules (504, 505, and 506) under Regulation D relate to the (a) amount of offerings and (b) number of investors. Match Rules 504, 505, and/or 506 with each of the following: A. $5 million offeri...

See Answer

Q: Petal Providers Corporation opens and operates “mega” floral stores in

Petal Providers Corporation opens and operates “mega” floral stores in the U.S. The idea behind the super store concept is to model the U.S. floral industry after its European counterparts whose flow...

See Answer

Q: Petal Providers Corporation, described in Problem 1, is interested in

Petal Providers Corporation, described in Problem 1, is interested in estimating its sustainable sales growth rate. Last year revenues were $1 million, the net profit was $50,000, the investment in as...

See Answer

Q: Petal Providers Corporation, described in Problem 1, is interested in

Petal Providers Corporation, described in Problem 1, is interested in estimating its additional financing needs to support a rapid increase in sales next year. Last year revenues were $1 million, the...

See Answer

Q: Describe the differences between senior debt and subordinated debt.

Describe the differences between senior debt and subordinated debt.

See Answer

Q: The Minoso Corporation anticipates a 20 percent increase in sales for 2017

The Minoso Corporation anticipates a 20 percent increase in sales for 2017 over its 2016 level. Minoso is currently operating at full capacity and thus expects to increase its investment in both curr...

See Answer

Q: Following are two years of income statements and balance sheets for the

Following are two years of income statements and balance sheets for the Munich Exports Corporation. Munich Exports Corporation  2015  2016  Cash  $ 50,000  $ 50,000  ...

See Answer

Q: Assume you sell for $100,000 a 10 percent ownership

Assume you sell for $100,000 a 10 percent ownership stake in a future payment one year from now of $1.5 million. A. What are you saying about the implied return for the 10 percent owner? B. What is th...

See Answer