Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quiestion 23 1 points 5 If a limited partner invests $500,000 into a private equity fund, and the fund returns $2,000,000 to this investor in

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed
Quiestion 23 1 points 5 If a limited partner invests $500,000 into a private equity fund, and the fund returns $2,000,000 to this investor in 5 years, what is the cash-on-cash multiple of this fund 0 a. The cash-on-cash multiple is equal to 4.0 O b. The cash-on-cash multiple is equal to 5.5 O c. The cash-on-cash multiple is equal to 3.5 O d_The cash-on-cash multiple is equal to 2.0 Question 27 1 points Save Ans As a venture capitalist, you have invested $3 million into a start-up company for 35% of the company's ownership. If the deal is structured as participating convertible preferred stock. If a potential acquirer offers $9 million for this company, what is the net payout for venture capitalist? O a. $3,000,000 O b. $2,000,000 O c. $2,500,000 O d. $2, 100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

11th edition

9781259278617, 77861647, 1259278611, 978-0077861643

More Books

Students also viewed these Finance questions

Question

Contrast Adlers and Freuds approaches to motivation.

Answered: 1 week ago