1. what are the challenges when valuing high growth firms?

a. hard to make pro formas as historical information is limited

b. earing based multiples (such as PE ratio) are not useful when earnings for high-growth firms are often negative

c. all of the descriptions are mentioned here

d. a lot of uncertainties at early stages (high-growth phase) compared to established phase

2. the following factors contribute negatively to unit economics (choose all that apply)

a. revenue generated by each customer during her lifetime as the customer

b. customer retention rate

c. new customer acquisition

d. gross margin

3.

0 Font - Font Name - 4 * Col Copy Tab Step Wrap Text Overline Insert Column 3- Insert Row ** Delete Column 3. Delete Row 3 Merge Cell CLICK HERE TO SAVE YOUR WORK D F H New customer acquisition cost (per person) 100 Annual revenue contributed by a customer 600 Awcase customer churn rate 40% 5 Scenarios Grossmarsin Probability LTV Good 90% 20% Base care 70% 50% Dealhunter 50% 30% 10 27 12 13 Assume no discounting within customer lifetime