Which of the following is TRUE about Venture Capital Financing?

A)

Upon successful IPO, first round VC gets lower return than later stage VC

B)

VC firms generally invest in well-established multinational companies

C)

VC financing is available when a company issues its secondary offering

D)

IPOs backed by Venture Capital have higher long-term returns

E)

VC firms get positive returns from all their investments

23. Which of the following statements about the Financial Life Cycle is true?

A)

Access to capital markets is one of the primary reasons for a company to issue an IPO

B)

The Long-Term (3-year) adjusted performance of IPOs is positive

C)

IPOs are generally overpriced as first day returns are typically negative

D)

Stock prices always increase at the announcement of a secondary stock offering

E)

Early stage VC investors (A-round) typically expect lower returns than later VC investors (C-Round)

24. Bob has a goal to buy a $1.2 million beach house in 10 years. If he expects to make 6% in the market, how much does he need to invest today to buy his beach house in 10 years?

A)

$677,368.72

B)

$720,000.00

C)

$670,073.73

D)

$191,041.55

E)

$112,800.00