• Q : Ben toucan owner of the aspen restaurant....
    Finance Basics :

    Ben Toucan, owner of the Aspen Restaurant,wants to determine the present value of his investment.The Aspen Restaurant is currently in the development stage but Toucan hopes to "begin" operations early

  • Q : The decision is being considered of going to tv advertising....
    Finance Basics :

    Be a Devil's Advocate.The decision is being considered of going to TV advertising,as well as drive-through windows, thus becoming more like the successful fast-food restaurants.What arguments would yo

  • Q : A standard corporation instead of a proprietorship....
    Finance Basics :

    Assume your new venture, organized as a proprietorship,is in its first year of operation.You expect to have taxable income of $50,000.

  • Q : The amount of a bank loan....
    Finance Basics :

    Assume you started a new business last year with $50,000 of your own money,which was used to purchase equipment.

  • Q : The implied return for the 10 percent owner....
    Finance Basics :

    Assume you sell for $100,000 a 10 percent ownership stake in a future payment one year from now of $1.5 million.

  • Q : The foretasted cash flows presented....
    Finance Basics :

    Assume the foretasted cash flows presented in Problem 2 for the TecOne Corporation venture also hold for the LowTec venture.

  • Q : Developed and tested a prototype electronic product....
    Finance Basics :

    Assume you have developed and tested a prototype electronic product and are about to start your new business.You purchase preprogrammed computer chips at $70 per unit.

  • Q : A new business involving the manufacture....
    Finance Basics :

    Assume you are starting a new business involving the manufacture and sale of a new product.Raw materials costs are $40 per product.Direct labour costs are expected to be $30 per product.You expect to

  • Q : Run out of money....
    Finance Basics :

    Assume that you have just "run out of money" and are unable to move your "idea" from its development stage to production and the start up stage. However, you remain convinced that with a reasonable am

  • Q : Development stage to production....
    Finance Basics :

    Assume that you have just "run out of money" and are unable to move your "idea" from its development stage to production and the startup stage.

  • Q : A first-generation prototype for a new product....
    Finance Basics :

    Assume that you have been working on a first-generation "prototype" for a new product.An angel investor is "waiting in the wings," wanting to invest in a second-generation model or prototype.Unfortuna

  • Q : The operation of your business resulted in sales....
    Finance Basics :

    Assume that the operation of your business resulted in sales of $730,000 last year.Year-end receivables are $100,000.You are considering factoring the receivables to raise cash to help finance your ve

  • Q : Information relating to gamma systems....
    Finance Basics :

    Assume that some of the information relating to Gamma Systems Manufacturing Corporation has changed. Answer the following questions using the financial statement data in Problem 5.

  • Q : A venture has a perpetuity enterprise value....
    Finance Basics :

    Assume a venture has a perpetuity enterprise value cash flow of $800,000. Cash flows are expected to continue to grow at 8 percent annually and the venture's WACC is 15 percent.

  • Q : Stage to the startup stage....
    Finance Basics :

    As your venture has moved from the development stage to the startup stage,a number of trade secrets have been developed along with an extensive client list.You are in the business of developing and

  • Q : Defend against mcdonald’s....
    Finance Basics :

    As a Starbucks senior executive, describe how you would defend against McDonald’s.

  • Q : A google stockholder....
    Finance Basics :

    As a Google stockholder,should you be worried if the Microsoft merger with Yahoo goes through? Why or why not? Is there anything Google can do to prevent it?

  • Q : A continuation of problem 11....
    Finance Basics :

    Artero Corporation,discussed in Problems 9 and 11,is a retailer of toy products.This is a continuation of Problem 11.The firm's management team recently extended the monthly sales forecasts through

  • Q : A retailer of toy products....
    Finance Basics :

    Artero Corporation, discussed in Problem 9,is a retailer of toy products.The firm's management team recently extended the monthly sales forecasts that were prepared for the last three months of 2011

  • Q : Relation to venture opportunity....
    Finance Basics :

    An analogy used in relation to venture opportunity screening makes reference to "caterpillars" and "butterflies." Briefly describe the use of this analogy.

  • Q : The income statement....
    Finance Basics :

    After forecasting sales,describe how the income statement is projected.

  • Q : A venture recorded revenues....
    Finance Basics :

    A venture recorded revenues of $1 million last year and a net profit of $100,000.Total assets were $800,000 at the end of last year.

  • Q : A venture investor wants to estimate the value....
    Finance Basics :

    A venture investor wants to estimate the value of a venture. The venture is not expected to produce any free cash flows until the end of Year 6, when the cash flow is estimated at $2,000,000, and is

  • Q : The venture’s equity value....
    Finance Basics :

    A venture has a $500,000 bank loan outstanding, a long-term debt obligation of $900,000, accounts payable of $200,000, and accounts receivable of $350,000. A. If the venture’s equity value is

  • Q : The value of a new venture....
    Finance Basics :

    A venture capitalist wants to estimate the value of a new venture.The venture is not expected to produce net income or earnings until the end of Year 5 when the net income is estimated at $1,600,000

©TutorsGlobe All rights reserved 2022-2023.