Hart Venture Capital Case Problem 3 After performing an analysis of HVC’s investment problem‚ I found that the company’s objective was to maximize the net present value of the total investment in Security Systems and Market Analysis. To find the maximum net present value and analyze the numbers‚ I set up the model shown below. Max 1‚800‚000*SS + 1‚600‚000*MA s.t. 600‚000*SS + 500‚000*MA ≤ 800‚000 600‚000*SS + 350‚000*MA ≤ 700‚000 250‚000*SS + 400‚000*MA ≤ 500‚000 SS‚MA ≥ 0 After
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Compensation Structure in VC firms: 1. Problems with placement agents: * Corruption especially with people who have special connections to the firm * Placement agent role - getting personal kickbacks for directing them to investment vehicles * Calpers fraud problem with pension funds and personal incentives 2. Compensation * 2nd five years of venture capital firms is called – harvesting – don’t have to work that hard‚ essentially let the investments run themselves
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Managerial Finance – Problem Review Set – Capital Structure and Leverage 1) If a firm utilizes debt financing‚ an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X. a. True b. False 2) Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore‚ the variability of both firms ’ expected EBITs could
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for the year ending 12/31/07: Net income = $300; Net operating profit after taxes (NOPAT) = $400; Total assets = $2‚500; Short-term investments = $200; Stockholders’ equity = $1‚800; Total debt = $700; and Total operating capital = $2‚300. What was its return on invested capital (ROIC)? a. 14.91% NOPAT = $400 b. 15.70% To OCap=$2500 c. 16.52% NOPAT d. 17.39% TOC = ROIC $400/$2300= e. 18.26%
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Math – 213 Problem Set Solve each of the following problems. 1. A coin is tossed four times. What is the probability that at least 2 heads will occur? 2. A pair of dice is rolled. What is the probability that the sum is equal to the following? a. 5 b. 10 c. at most 9 d. at least 8 3. A chip is drawn at random from a jar containing 8 red‚ 2 blue‚ 3 green‚ 4 yellow‚ and 3 white chips. Determine the probability that it is: a. Red b. Yellow or red c. Not orange 4. In a graduating class of 300 students
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Me1 Problem Set #2 The US College Enrollment and the “Third Law of Demand” A theorem proposed by Professors Alchian and Allen in their text‚ University Economics (1964) has had several rebirths of interest in the literature. The so-called “third law of demand‚” or “relative price theorem‚” holds that a fixed cost added to a good of varying quality causes the consumer to prefer the category considered of higher quality to the lower. Recently a number of studies‚ keeping this theorem in mind have
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Notes to Consolidated Financial Statements (continued) complaints‚ which assert varying claims‚ including breach of contract‚ and violations of ERISA‚ state and federal law‚ all allege that the prices BNY Mellon charged and reported for standing instruction foreign exchange transactions executed in connection with custody services provided by BNY Mellon were improper. In addition‚ BNY Mellon has been named as a nominal defendant in several derivative lawsuits filed on various dates in 2011 and 2012
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Energy 1. A man climbs on to a wall that is 5 m high and gains 2200 J of potential energy. What is the mass of the man? Given: Formula: h = 5 m m = PE/gh PE = 2200 J Solution: m = 2200 J / (9.8 m/s2 x 5 m) m = 49 kg 2. Calculate the kinetic energy of a 500 kg car travelling at 50 m/s. Given: Formula: m = 500 kg KE = mv2/2 v = 50 m/s Solution: KE = 500 kg x (50 m/s)2 / 2 KE = 625 000 J Power 3. Riley climbs a flight of stairs in 3 minutes. If he
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ECE 302 Problem Set 9 Fall 2013 The following problems have been selected from the course text. 4.78 In a large collection of wires‚ the length of a wire is X‚ an exponential random variable with mean 5π cm. Each wire is cut to make rings of diameter 1 cm. Find the probability mass function for the number of complete rings produced by each length of wire. 4.85 The exam grades in a certain class have a Gaussian pdf with mean m and standard deviation σ. Find the constants a and b so that
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the proposed business plan calls for an equity injection of £● . Of this amount‚ funds managed by us (the "Funds") will provide £● alongside investment by other venture capital funds or financial institutions (together the "Investors"). We will act as lead equity investor. 2 The investment will be at a fully diluted pre-money valuation of £● ‚ including employee share options (both granted or committed) equal to ●% of the fully diluted equity. The investment will represent a ●% shareholding for
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