PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Textbook Question
Chapter 15, Problem 8PS
Venture capital Complete the passage using the following terms: limited partners, venture capital, private, underwriters, general partners, private equity, corporate venturers,
Equity capital in young businesses is known as _____ (a) _____, and it is provided by specialist firms: wealthy individuals, known as _____ (b) _____; and large technology companies that act as _____ (c) _____. Venture capital funds are organized as _____ (d) _____. The management companies are the _____ (e) _____, and pension funds and other investors are the _____ (f) _____. Venture capital partnerships are often lumped together with similar partnerships that buy whole companies and take them _____ (g) _____. The general term for these firms is _____ (h) _____ companies.
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A start-up company, is looking for various sources of funds. They already have an account payable and receivable a notes payable a bank margin account, a lease for their office space, and some initial investors who have bought some preferred shares. They are in the process of completing their frst Initial Public Offer (IPO). Which of the following are considered medium-term sources of funds? (Select only one answer that best applies)
a) The notes payable and the lease
b) The lease, but not notes payable
c) The preferred shares, but not the common shares
d) The preferred and common shares
e) The bank account margin
f) Accounts receivable and accounts payable
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1. Explain the concept of venture capital funding with relevant examples
2. Using relevant illustrations, compare and contrast the workforce implications of the
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3. Compare and contrast strategic alliances with joint ventures. Support your answer
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4. How is a business plan different from an executive summary?
Chapter 15 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 15 - Vocabulary Each of the following terms is...Ch. 15 - Prob. 2PSCh. 15 - Vocabulary Here is a further vocabulary quiz....Ch. 15 - Stock issues True or false? a. Venture capitalists...Ch. 15 - Prob. 5PSCh. 15 - Prob. 6PSCh. 15 - Prob. 7PSCh. 15 - Venture capital Complete the passage using the...Ch. 15 - Venture capital a. A signal is credible only if it...Ch. 15 - IPOs Refer to Section 15.1 and the Marvin...
Ch. 15 - Prob. 11PSCh. 15 - Prob. 12PSCh. 15 - Issue costs In April 2019. Van Dyck Exponents...Ch. 15 - Underpricing In same U.K. IPOs, any investor may...Ch. 15 - Prob. 15PSCh. 15 - Prob. 16PSCh. 15 - Underpricing Construct a simple example to show...Ch. 15 - Prob. 18PSCh. 15 - Prob. 19PSCh. 15 - Costs of a general cash offer Why are the costs of...Ch. 15 - Prob. 21PSCh. 15 - Prob. 22PSCh. 15 - Rights issues In 2012, the Pandora Box Company...Ch. 15 - Prob. 24PSCh. 15 - Rights issues vs. cash offers Suppose that instead...Ch. 15 - Private placements You need to choose between...Ch. 15 - Prob. 27PSCh. 15 - Prob. 28PSCh. 15 - Dilution Here is recent financial data on Pisa...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
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- Explain any company (either local or international) that used venture capital as a source of financing.arrow_forwardQuestion 6 is financing obtained from investment firms that specialize in financing small, high- growth companies and receive an ownership interest and a voice in management in return for their money. Debt financing Venture capital Equity financing Entrepreneurial capital O Corporate stock financingarrow_forwardSelect all that are true with respect to the flow to equity (FTE) approach: Group of answer choices Equity represents the senior claimants; thus, they have priority rights over all the other capital providers to the firm. Estimate free cash flow to equity as the after-tax operating cash flow less interest payments to debt holders. Estimate free cash flow to equity as the after-tax operating cash flow less after-tax interest payments and principal payments to debt holders. The value of the entire firm is the value of the equity plus the value of the debt (assume excess cash is zero).arrow_forward
- Every business needs money to fulfill its financial requirements and also for growth. Business owners try to find money from various sources to fund their businesses.Required:Briefly explain the following sources of finance:(a) Hire Purchase (b) Factoring (c) Equity Share Capital(d) Preference Share Capital (e) Leasing (f) Debentures (g) Depreciation fundarrow_forwardAs a micro-enterprise, which sets of financing are the most likely to be used? *A. Banks and venture capitalistsB. Tax holidays and leasesC. Retained earnings and convertible securitiesD. Public issuance of equity and debtarrow_forwardThere are 4 main ways that businesses raise financial capital: 1. Early-stage capital 2. Profits 3. Bonds 4. Stocks Which one do you think is the best approach to employ and why?arrow_forward
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