Venture capital assignment | Business & Finance homework help

In a two-page paper, please complete the following questions from the end of Chapter 6 on page 196.

Questions 1, 3, 5, 12, 14

 

In a two-page paper, please complete the following questions from the end of Chapter 7 on page 235.

Questions 1, 2, 4, 5, 7, 9, 12, 16

Note: The number of questions in #2 above are short answer, so in terms of the amount of work, it is not significantly greater than other exercises.

 

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14.

Why would limited partners countenance their GPs putting more money into a struggling company? How does that differ from a bank’s response to a company’s difficulties? How does that help explain the differences between the sorts of companies that take VC investment as opposed to those that take bank debt?

 

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2nd Part

1.

Exits are ultimately how private equity firms realize returns on their investments. Describe the various ways for a private equity firm to exit an investment.

2.

What are some of the key considerations in determining whether to take a company public?

4.

What are some of the characteristics of a private company that may increase the likelihood of an IPO?

5.

What are some of the characteristics of a private company that may prevent it from going public?

7.

What are some of the key advantages of being a public company? What are the disadvantages?

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9.

Explain the phenomenon of underpricing as it relates to IPOs.

12.

What purpose does corporate VC serve? What are the potential advantages?

16.

What are some of the key issues with distributing stock directly to LPs in conjunction with an IPO? What would LPs prefer?