Chapter 15 - Summary - Fundamanental of Corporate Finance

I need the answer key to these two multiple-choice questions below

Chapter 12 Exercise/Problem 10 - Professional Venture Capital  Locate a venture capital-backed firm that recently completed and initial public offering (IPO). Provide a brief summary of the venture's history and success through the IPO and to date.

Topic: Part A (Essay): (15 marks) Critically discuss the various aspects of capital investment appraisal and explain how you could evaluate an investment proposal in a technology startup. In your discussions, you should also assess the cashflow generation, its financial viability, performance and non-financial considerations of the startup. You are expected to use relevant literatures and real business examples to support your discussions. In choosing your business examples, please do not use examples provided in class, textbooks or other sources. The report is worth 25% and has a maximum 1,500 words limit (excluding the title, tables, headings/sub-headings and references) and is to be completed individually. To successfully complete the report, students are required to provide references within the report to at least four (4) relevant scholarly articles if secondary data are used. A mark out of 100 will be awarded, which will in turn be converted to a score out of 15. Hints: In making…

As an Investment Analyst who researches and analyses markets, companies, and stocks to be invested in. provide an analysis of Apple and Microsoft in paragraph format

What can be added to this or what comment can made?   The weighted average cost of capital (WACC) is a useful measure for businesses deciding whether or not to invest. WACC is a financial model that helps companies understand how investment decisions will effect their finances. Companies and investors will be able to determine whether or not to proceed with investment initiatives based on the information offered by applying WACC calculations, such as a company's share value. WACC will be used by financial analysts to determine critical investing parameters such as the net present value of a firm and the potential for future cash flows. WACC is used to complete these computations, and the result is divided by the number of shareholders' equity.

As an Investment Analyst who researches and analyses markets, companies, and stocks to be invested in. provide an analysis of Apple inc in paragraph format

1. What is the research of a publicly traded company that recently (within the past three years) went public through an IPO (initial public offering)? 2. What is the process of a company selling its shares to the public for the first time? 3. How are the IPOs typically used by young companies to raise capital for future business expansion?

Case Study #3: Chapter 6 Business Analysis -  A business can be valued by capitalizing its earnings stream (see example 6.15).  How might you use the same idea to value securities, especially the stock of large publicly held companies? Is there a way to calculate a value that could be compared to the stock’s market price that would tell an investor whether it’s a good buy? (If the market price is lower than the calculated value, the stock is a bargain.)  What financial figures associated with shares of stock might be used in the calculation. Consider the per share figures and ratios discussed in chapter 3 including EPS, dividends, book value per share, etc.  Does one measure make more sense than the others? What factors would make a stock worth more or less than your calculated value?

2. You have studied the venture life cycle (stages of life) namely development, startup, survival, rapid, early maturity stage. Of course, every life hasneeds financing different. You as entrepreneurs must be able to create value for your business. You must multiply your investment in the development stage until the business develops and is expected to go public through an Initial Public Offering (IPO) in the future. a. Mention the type of financing at each stage of the life cycle and be given aexplanation brief b. Mention major sources from point (a) above 3. In your Entrepreneurial Finance text book, the definition of a business plan is“written asis a written document that describes the proposed venture in terms of the product or service opportunity, current resources, and financial projections. More formal business plan development is common in ventures moving from the development stage to the startup stage. The process of business planning is beneficial to the entrepreneur, who…

Discuss the additional problems which can arise when trying to value new issues of shares, such as IPO.

In question C there is a plot of of cost of debt, cost of equity and cost of capital. Can you show how r_a is calculated to be 0.18667? r_d = Cost of debt r_a = cost of capital r_e = Cost of equity