Questions from Entrepreneurial Finance


Q: From the Headlines—Excaliard: What ingredients would you need to

From the Headlines—Excaliard: What ingredients would you need to conduct a VCSC valuation for Excaliard? Does your calculation suggest that a $15.5 million Series A round is reasonable?

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Q: What is the enterprise (entity) method of valuation, and

What is the enterprise (entity) method of valuation, and how does it differ from the other equity methods?

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Q: From the Headlines—Boom Supersonic: Comment on Boom Supersonic’s potential

From the Headlines—Boom Supersonic: Comment on Boom Supersonic’s potential to eventual provide liquidity to its investors through an IPO or a sale. Which one seems more likely to you? Why?

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Q: What is the purpose of the U.S. Bankruptcy Code

What is the purpose of the U.S. Bankruptcy Code? What are some of the characteristics of ventures that use instead of private liquidation?

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Q: Artero Corporation is a traditional toy products retailer that recently started an

Artero Corporation is a traditional toy products retailer that recently started an Internet-based subsidiary that sells toys online. A markup is added on goods the company purchases from manufacturers...

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Q: Two years of financial statement data for the Munich Export Corporation are

Two years of financial statement data for the Munich Export Corporation are shown below. A. Calculate the inventory-to-sale, sale-to-cash, and purchase-to-payment conversion periods for Munich Exports...

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Q: Castillo Products Company, described below, improved its operations from a

Castillo Products Company, described below, improved its operations from a net loss in 2018 to a net profit in 2019. While the founders, Cindy and Rob Castillo, are happy about these developments, the...

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Q: Refer to Problem 13 for Voice River, Inc. A

Refer to Problem 13 for Voice River, Inc. A. Estimate the WACC if the cost of common equity capital is 20 percent. B. Estimate the WACC if the cost of common equity capital is at the representative ta...

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Q: Refer to the Mini Case at the end of the chapter involving

Refer to the Mini Case at the end of the chapter involving Jen and Larry’s Frozen Yogurt Company. A. Calculate the dollar amount of NOPAT if Jen and Larry’s venture achieves the forecasted $1.2 millio...

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Q: Assume that BKAngel’s initial investments in the three ventures had been Venture

Assume that BKAngel’s initial investments in the three ventures had been Venture 1 5 $500,000, Venture 2 5 $300,000, and Venture 3 5 $200,000, with each investment having achieved the same cash flows...

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