1) A venture's present value according to DCF is determined by

a. the size and timing of its future cash flows

b. time value of money

c. its net income

d. a and b

e. a and c

2) a "post money" valuation differs from a "pre money" valuation by the cost of financial capital:

True or False

3) Each of the following is an advantage of an exit via IPO except:

a. an increase in the venture's public awareness

b. a relatively rapid path toward founder exit

c. a large financial windfall for founders and investors

d. a large influx of cash for company growth

4) The employee option pool fund in most term sheets has which of the following effects:

a. lowers the overall percent of the founders

b. dilutes investors shares

c. increases founder control over the company.

d. all of the above

e. none of the above

5) If a series A term sheet indicates a post money valuation of $9m based on an investment of $4m then witch of the following is true:

A. premoney valuation =$4m

B. founders own 55% of company shares

C. Investors own 55% of company shares

D. both a and b are correct

E. both a and c are correct