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Scorpion4ik [409]
3 years ago
15

An important part of obtaining venture capital funding is going through ________ , which refers to the process of investigating

the merits of a potential venture and verifying the key claims made by the business plan.
Business
1 answer:
geniusboy [140]3 years ago
5 0

Answer:

Due-diligence

Explanation:

Due diligence is the process of inspection by the venture capitalist to determine whether to invest in any company or not. In due diligence they gauge the potential of success of company and potential profitability. Due diligence process involves asking question to obtain important information to verification of  feasibility of business opportunity. The question is primarily involved around date from financial reports, legal aspects, any intellectual property possess, the assets and liability of company.

Since given in question key claims of business plan is being verified, therefore due diligence process is being followed in venture capital funding

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2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the econo
gladu [14]

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

4 0
3 years ago
Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union P
erma4kov [3.2K]

Answer and Explanation:

The computation of the asset turnover for all three companies is as follows:

<u>Particulars        YRC            UNP                CH </u>

Sales                4697500    19941000          13144413

Divided by

Average

total assets     1824700       55159000          3436058

Assets turnover  2.6                0.4                    3.8

4 0
3 years ago
Computing first-year depreciation and book value At the beginning of the year, Austin Airlines purchased a used airplane for $33
irakobra [83]

Answer:

1. a. $560,000

  b. $13,400,000

  c. $7,700,000

Explanation:

The computation of the depreciation expense and the year end book value for the first year is shown below:

a) Straight-line method:

= (Purchase value of airplane - residual value) ÷ (useful life)

= ($33,500,000 - $5,500,000) ÷ (5 years)

= ($28,000,000) ÷ (5 years)  

= $560,000

In this, the depreciation expense is same for all the remaining useful life

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= Percentage ÷ useful life

= 100 ÷ 5

= 20%

Now the rate is double So, 40%

In year 1, the original cost is $33,500,000, so the depreciation is $13,400,000 after applying the 40% depreciation rate

(c) Units-of-production method:

= (Purchase value of airplane - residual value) ÷ (estimated miles)  

= ($33,500,000 - $5,500,000) ÷ ($4,000,000 miles)

= ($28,000,000) ÷ ($4,000,000 miles)  

= $7 per miles

Now for the first year, it would be  

= Expected miles in first year × depreciation per miles

= 1,100,000 miles × $7 per miles

= $7,700,000

Now the book value would be

Straight-line method:

= Acquired value of a plain - accumulated depreciation  

= $33,500,000  -  $560,000

= $32,940,000

Double-declining balance method:

= Acquired value of a plain - accumulated depreciation  

= $33,500,000  - $13,400,000

= $20,100,000

Units-of-production method:

= Acquired value of a plain - accumulated depreciation  

= $33,500,000  - $7,700,000

= $25,800,000

5 0
3 years ago
If the market index subsequently rises by 8% and Ford’s stock price rises by 7%, what is the abnormal change in Ford’s stock pri
Margarita [4]

Answer:

-1.9%.

Explanation:

The computation of the abnormal change in the stock price of ford should be given below:

Given that

The return on the market is 8%.

So, the forecast monthly return for Ford is

= 0.10% + (1.1 × 8%)

= 8.9%.

And, the Ford’s actual return was 7%,

So,

the abnormal return be

= 7% - 8.9%

= -1.9%.

3 0
3 years ago
A $104,000 selling price with $24,000 down at 8.5% for 25 years results in a monthly payment of?
jekas [21]
119 payments of 330.38 
5 0
3 years ago
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