Individual or limited partner venture capitalists generally

Assignment Help Financial Management

Reference no: EM132046071

1. Individual or limited partner venture capitalists generally:

A. seek an exit strategy.

B. provide only seed money to start-up firms.

C. tend to be long-term investors.

D. are easy to contact.

E. request less than 25 percent ownership.

2. Which of these may occur if a company uses its overall cost of capital as the discount rate for all projects? I. Profitable low-risk projects may be incorrectly rejected. II. Only projects with risks similar to the current company will be accepted. III. Too many high-risk projects may be accepted. IV. Only low-risk projects will be accepted.

A. Profitable low-risk projects may be incorrectly rejected.

B. II only

C. II and IV only

D. I and III only

E. I and IV only

F. I, II, and III only

Reference no: EM132046071

Questions Cloud

Prepare all of the relevant journal entries : Sanford Co. sells $518,000 of 10% bonds on March 1, 2014. Prepare all of the relevant journal entries from the time of sale until the date indicated

Current value of the swap to the party paying floating : What is the current value of the swap to the party paying floating?

Discuss the goal of financial management : Discuss the Goal of Financial Management! Do you think the current practice of executive compensation is working well to reduce agency problems? Why

Define changes in what is considered a mental disorder : The field of psychology has changed dramatically over time. As our knowledge has grown, treatment of individuals and groups has improved.

Individual or limited partner venture capitalists generally : Individual or limited partner venture capitalists generally

Weights used in the computation of project flotation costs : The weights used in the computation of a project's flotation costs should be based on the:

Describe a classified income statement : Describe a classified income statement. Be sure to address the classified income statement's four sections and the important financial relationships found

Calculate the mean square for marital status : What are the degrees of freedom for 1) gender, 2) marital status, 3) interaction between gender and marital status, and 4) error or within variance?

What is the firm pretax cost of debt-cost of preferred stock : The issue makes annual payments and has coupon rate of 8.7 % annually. What is the firm's pretax cost of debt? What is Borkshire's cost of preferred stock?

User Account

All Pages