Answer:
The incorrect statement about Venture capitalists is:
Venture capitalists usually assume active roles in the management of the financed firm.
Explanation:
Venture capitalists are high net worth individuals with managerial competence or experience seeking for new businesses to invest in. In exchange, they ask for an equity stake in the company they finance.
Venture capital financing is the type of funds that are given to invested into viable businesses in their budding stage by investors that see long term growth potential in them. it is a form of private equity.
Venture Capitalist never assume active roles in the management of the financed firm. however, if they have the technical know how, they may pitch in passively from time to time to advice.
Answer:
Free cash for first year is $98.75
Explanation:
Sales = $250 million
Less: Costs = $125 million
Less: Depreciation = <u>$50 million</u>
Earning before Tax = $75 million
Less: Tax 35% (75 x 35%) = <u>$26.25 million</u>
Net Income = <u>$ 48.75 million</u>
Free cash flow = Net Income + Non cash Expenses - Increase in working capital - Capital Expenditure
Free cash flow = 48.75 million + 50 million - 0 - 0
Free cash flow = 98.75 million
The primary goal of a publicly owned firm interested in serving its stakeholders would be to Maximize the stock price per share.
<h3>How a stock price is maximized</h3>
The faster this firm grows, the more people would want to invest and buy its stock. This would cause them to pay higher.
As the supply of this stock stays constant due to the increased demand it has, the price of the stock would increase.
Read more on Stocks here:
brainly.com/question/25818989
Answer:
Option (B) is correct.
Explanation:
The quantity theory of money can be expressed in the form of an equation that is
M × V= P × GDP
where,
M = Money supply
V = Velocity of money
P = Price level
GDP = Gross domestic product
P × GDP is the nominal GDP, it is the amount of required for purchasing the total amount of output. All the transactions are depends upon the income level of the consumers at the full-employment level. So, if there is an increase in the money supply, this will results in higher prices which means that an increase in the money supply over the real gross domestic product would cause the inflation.
Increase in the money supply will increase the nominal GDP but real GDP remains the same. But if the growth rate of money supply is equal to the growth rate of real GDP then there will be no inflation and Real GDP remains constant at the full-employment level, hence, its level of volume doesn't increase if the there is an increase in the money supply.
Therefore, increased growth rate of money supply over the real GDP causes inflation.
Answer:
False
Explanation:
On the contrary, high economic growth may lead to high inflation. Economic growth is indicated by an increase in the value of the gross domestic product GDP. The GDP measures economic growth by calculating the values of all the finished goods and services in a country per period.
Economic growth may be a result of an increase in aggregate demand. The government may institute monetary and fiscal stimulus measures that increase the demand for goods and services. Increased demand results in inflation because consumers will have too much cash, but few goods and services are available. When growth is due to an increase in productivity, inflation is minimal. Inflation is a general increase in prices. Prices usually go up with an increase in economic activities.
