If entrepreneurs discount the future cash flows of a venture at a higher rate than do diversified
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If entrepreneurs discount the future cash flows of a venture at a higher rate than do diversified investors, why do entrepreneurs generally hold substantial equity interests in their ventures, and why are their claims usually riskier than the claims held by the investor?
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Entrepreneurs generally hold substantial equity interests in their ventures and their claims are usually riskier than the claims held by investors despite potentially discounting future cash flows at ...View the full answer
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Related Book For 
Entrepreneurial Finance Strategy, Valuation, And Deal Structure
ISBN: 9780804770910
1st Edition
Authors: Janet Smith, Richard Smith, Richard Bliss
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