Which of the following types of financing would be associated with the highest target compound rate of return on venture equity capital?Seed financingVentures that reach the survival stage of their life cycles and seek first-round financing are typically organized as:LLCs or corporationsInvestor liability is unlimited under which of the following types of business organizational formsProprietorshipThe efforts to regulate the trading of securities takes place under which of the following securities lawsSecurities Exchange Act of 1934During which round of financing is a venture typically most accurate in forecasting sales?seasoned financingDuring which life cycle stage is a venture typically most accurate in forecasting Salesearly-maturity stagePublic or season financing is generally associated with which of the following life cycle stagesEarly maturity stageAn expected value isweighted average of a set of scenarios or possible outcomesInternally generated funds which are again let for distribution to owners for reinvestment back into the business to support future growth can be characterized by which of the followingNet incomeWhich of the following ratios is not part of the standard return on equity model ?Retention rateThe financial funded needed to acquire assets necessary to support a firms sales growth is calledFinancial capital neededThe increase in accounts payables and accruals that occur with a sales increase is calledspontaneously generated fundsWhich of the following would increase a firms need for additional funds?An increase in the dividend payout rateWhen projecting financial statements one would first —— then proceed to —-Forecast sales, project the income statementThe calculate a terminal value, one divides the next periods cash by the spread betweenConstant and constantWhen estimating the terminal value of a cash flow perpetuity, which of the following is not a componentThe payback periodThe calculation of equity valuation cash flows nets the the cash impact of all other balance sheet and income statement accounts to focus on the ——EquityIn equation form the equity valuation cash flow is defined byNet income + depreciation and amortization expense - change in the net operation working capital - capital expenditures + net debt issuesA venture's riskiness in terms of poor performance or failure is usually high to moderate during the rapid-growth stage of its life cycle (T/F)TrueA venture's riskiness in terms of poor performance or failure is usually high to moderate during the rapid-growth stage of its life cycle. (T/F)TrueDefault risk is the risk that a borrower will not pay interest and/or repay the principal on a loan. (T/F)TrueMarket cap is determined by multiplying a firm's current stock price by the number of shares outstanding. (T/F)True"First-round financing" usually occurs during a venture's rapid-growth life cycle stage (T/F)FalseThe life of a proprietorship is determined by the owner T/fTrueVentures in the rapid growth stage often need to seek new investors through large private or public offerings T/fTrueOne of the monetary requirements for individuals or natural persons as accredited investors defined in rule 501 of regulation D is a new worth greater than $1,000,000 t/fTrueA regulation D: rule 506 offering has no limit in terms of the dollar amount of the offering but is limited to 35 unaccredited investors T/fTrue
