Questions from Entrepreneurial Finance

Q: Briefly describe the process for projecting financial statements.

Briefly describe the process for projecting financial statements.

Q: What is net operating working capital?

What is net operating working capital?

Q: Identify and describe the major components that are used to calculate the

Identify and describe the major components that are used to calculate the equity valuation cash flow.

Q: What is the relationship between equity valuation cash flows and dividends?

What is the relationship between equity valuation cash flows and dividends?

Q: Describe what is meant by the statement “If you’re not using

Describe what is meant by the statement “If you’re not using estimates, it’s not a valuation.”

Q: Define the terms (a) explicit forecast period (

Define the terms (a) explicit forecast period (b) terminal or horizon value as they relate to a venture’s discounted cash flow valuation.

Q: What are the three types of comparisons that can be made when

What are the three types of comparisons that can be made when conducting ratio analyses?

Q: What is a venture’s reversion value?

What is a venture’s reversion value?

Q: Explain the difference between pre-money valuation and post-money

Explain the difference between pre-money valuation and post-money valuation.

Q: Describe the equity valuation method.

Describe the equity valuation method.