Questions from Entrepreneurial Finance

Q: The TecOne Corporation is about to begin producing and selling its prototype

The TecOne Corporation is about to begin producing and selling its prototype product. Annual cash flows for the next five years are forecasted as: Year Cash Flow 1 -$50,000 2 -$20,000 3 $100,...

Q: Assume the forecasted cash flows for the TecOne Corporation venture also hold

Assume the forecasted cash flows for the TecOne Corporation venture also hold for the LowTec venture. However, investors in LowTec have an expected rate of return of 30 percent on their investment un...

Q: Ben Toucan, owner of the Aspen Restaurant, wants to determine

Ben Toucan, owner of the Aspen Restaurant, wants to determine the present value of his investment. The Aspen Restaurant is currently in the development stage but hopes to “begin” operations early next...

Q: Refer to the FrothySlope microbrewery example. A. How does

Refer to the FrothySlope microbrewery example. A. How does the $500,000 piece of the terminal value relate to the future value of the $100,000? That is, the brewpub investor was looking for a 40% ret...

Q: Following are financial statements (historical and forecasted) for the Global

Following are financial statements (historical and forecasted) for the Global Products Corporation. GLOBAL PRODUCTS CORPORATION Forecast 2016 2017 Cash $50,000 $60...

Q: Return to the discussion of the FrothySlope venture at the beginning of

Return to the discussion of the FrothySlope venture at the beginning of the chapter. Formulate an answer for each of the five questions that are posed under the heading “What Is a Venture Worth? (1)...

Q: Vail Venture Investors, LLC is trying to decide how much percent

Vail Venture Investors, LLC is trying to decide how much percent equity ownership in Black Hawk Products, Inc. it will need in exchange for a $5 million investment. Vail Venture Investors has a targe...

Q: What is the difference between private equity investors and publicly traded stock

What is the difference between private equity investors and publicly traded stock investors?

Q: Vail Venture Investors, LLC has recently acquired a 40 percent equity

Vail Venture Investors, LLC has recently acquired a 40 percent equity ownership in Black Hawk Products, Inc. in exchange for a $5 million investment. Vail Venture Investors is interested in estimatin...

Q: A venture capitalist wants to estimate the value of a new venture

A venture capitalist wants to estimate the value of a new venture. The venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at $1,600,000...