Test 2 - Questions Already Passed

If a venture has a return on assets (ROA) = 12%, an equity multiplier based on beginning equity = 3.0 times, and a sustainable growth rate of 18%, the retention rate would be: a. 10% b. 20% c. 30% d. 40% e. 50% {Ans: 50%}Corporate bonds might involve which of the following types of "premiums." a. inflation premium b. default risk premium c. liquidity premium d. maturity premium e. all of the above f. none of the above {Ans: all of the above}During which round of financing is a venture typically most accurate in forecasting sales? a. seasoned financing b. mezzanine financing c. first round financing d. startup financing e. seed financing {Ans: seasoned financing}For the typical venture investing project, the valuation will be highest under: a. DDA b. PDM and MDM c. VCSC d. initial book value of equity {Ans: PDM and MDM}The value of the existing venture plus the proceeds from the potential new equity issue is known as? a. pre-money valuation b. post money valuation c. staged financing d . the capitalization rate {Ans: post money valuation}The pseudo dividend method is a. the cleanest for valuing assets, but creates problems valuing surplus