Question 2

As part of the board power, a VC can fund an Enterprise throu staging of finance (mifestone based financ

An investor will fund a fixed amount to a company on stages (each specific period of time)

An investor will fund a varlable amount to a company on stages (each specific perlod of time).

An investor will fund the company in stages (on a specific period of time) based on achleving some goals.

O An investor will fund a company on stages (every year) using a contract between them.

Questio 3

Assume a firm has the following information:

Market risk premium (rm -rf) = 11%. Unlevered beta (B) is 1.5

Risk free interest rate (rf) is 3% Tax rate (t) is 15

Cost of debt (rd) is 6%

Total debt (D) is 10 million SAR. Total Equity (E) is 20 million SAR.

Calculate the following. Show your work.

A. Capital Asset Pricing Model (CAPM).

B. Weighted Average Cost of Capital (WACC).