1) If you are forecasting 45% IRR in the next five years for a private equity investment, which one of the below investors would be more interested in your company?

a. Corporate finance investors b. Mezzanine funds investors c. Venture capitalists d. None of the above

2) Which one of the below is true for investment milestones and valuation milestones on a term sheet?

a. Valuation milestones allow an investor to postpone payments until the milestone is reached. b. Investment milestones allows for reallocation of company ownership. c. Ownership reallocation following milestones can only be negative (decreased value). d. If a milestone is not reached, investor can postpone both initial and subsequent payments.

3. What is maturity premium for cost of financial capital?

a. Premium one would face in the absent of inflation, illiquidity and other external factors b. Premium required to compensate the lender for the probability that a borrower will stop making payments

c. Premium charged when a debt instrument cannot be converted to cash quickly at its existing value d. Premium that reflects increased uncertainty associated with long-term debt