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Question
A venture is expected to have an exit value of $10,000,000 five years from now. If venture investors invest $1,000,000 now, and expect a 20% compounded rate of return on their investment, what portion of the exit value would they need?
a. 10.5%
b. 20.1%
c. 24.9%
d. 28.8%
Answer
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Related questions
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Which of the following is not a characteristic of Regulation A?
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According to the Investment Advisers Act of 1940, a bank would not be classified as an "investment adviser."
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The typical business organization for a venture in its rapid-growth stage is a partnership or LLC.
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In SEC v. Ralston Purina (1953), the U.S. Supreme Court took an important step toward defining a public offering for the purposes of Section 4(2) of the Securities Act of 1933.
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Q:
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a. True
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Q:
In which of the following credit programs does the SBA borrow money to be lent to Small Business Investment Companies (SBICs) and guarantee payment to investors?
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Which of the following types of crowdfunding involves soliciting funds from a large number of small investors in exchange for an equity position in the venture requesting the funding?
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Q:
Arranging for partial ownership as a component of the expected return to a lessor is known as:
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In which of the following credit programs does the SBA approve a loan and guarantee up to 85% of loan value?
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Personal credit cards have proven to be a source of financing for startup firms for all of the following reasons except:
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b. teaser rates afford initial low cost borrowing
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The Small Business Administration was created by an act of Congress in 2003.a. Trueb. False
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The beginning of professional venture capitalists is considered to have begun with the establishment or formation of:
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Q:
When screening possible investments, a venture capital firm might issue a SLOR, which stands for:
a. "standard letter of rejection"
b. "standing letter of reconciliation"
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d. "senior letter of reference"