Most discounted cash flow valuations involve using cash flows from an:

Select one:

a.historical period, an explicit forecast period, and a terminal value

b.historical period and a terminal value

c.historical period and an explicit forecast period

d.explicit forecast period and a terminal value

When estimating the terminal value of a cash flow perpetuity, which one of the following is not a component?

Select one:

a.the next period's cash flow

b.a constant discount rate

c.a constant growth rate

d.the payback period

The purpose of the stepping stone year is?

Select one:

a.to assure that there is sufficient required cash

b.to assure that future dividends are constant

c.to assure that investment flows are consistent with terminal growth rates

d.to allow for a final year of higher-than-sustainable growth

For early stage ventures, which of the following is a strong reason for having an equity component in employee compensation?

Select one:

a.the expected deferred and tax-preferred compensation allows the venture to pay a lower current compensation to employees

b.as a way to motivate employees to strive for the same goal of high equity value

c.because any dividends received as part of the equity compensation reduces taxable income

d.bothaandb

e.all of the above

Which of the following financing rounds dilutes the ownership founders?

Select one:

a.first-round

b.second-round

c.incentive ownership round

d.aandb

e.a,b, andc

The return to venture investors directly depends on which of the following?

Select one:

a.venture's ability to generate cash flows

b.ability to convince an acquirer to buy the firm

c.the amount ofits short-term liabilities

d.bothaandb

e.all of the above