Question: What would be most appropriate method to value a loss-making start-up: Group of answer choices A. APV, because capital structure is likely to change. B.

What would be most appropriate method to value a loss-making start-up:

Group of answer choices

A. APV, because capital structure is likely to change.

B. A multiple based on current revenue, as this reflects current operations.

C. A multiple based on future profitability, which the company is expected to reach.

D. DCF, because early losses will be offset by profits as the company grows.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1 Match the terms to the right definitions. Group of answer choices entrepreneur [ Choose ] need for achievement, internal locus of control, and risk-taking propensity seeks to understand how...

Q:

1 Match the terms to the right definitions. Group of answer choices entrepreneur [ Choose ] need for achievement, internal locus of control, and risk-taking propensity the knowledge structures that...

Q:

1 Match the terms to the right definitions. Group of answer choices entrepreneur [ Choose need for achievement, internal locus of control, and risk-taking propensity seeks to understand how...

Q:

Researching changing consumer needs and desires for airline travel is a key aspect of American Airlines' business plan. Which of the following HR planning activities BEST supports this practice?...

Q:

Flag question: Question 1 Question 1 1 pts A client wants to reduce the property's hazard insurance coverage substantially, in order to save money on the premiums. If the property manager tries to...

Q:

Which behavior is this behavior by an acquisition stakeholder? Despite multiple requests from the Program Manager, the financial management representative has failed to provide historic spend...

Q:

PLEASE ANSWER THE FOLLOWING QUESTIONS AND BOLD THE ANSWER? 1.A project manager is estimating the project duration and finds that the only information available to him is a previous project that was...

Q:

Please help with the discussion below: ** Each of the 3 questions below only need to beabout two-threepara graphs but packed full of information, no fluff. **Attached below are a few readings from...

Q:

1 Match the terms to the right definitions. Group of answer choices entrepreneur [ Choose ] seeks to understand how opportunities to create something new arise and are discovered or created by...

Q:

Need assistance in calculating constant growth rate/Long term growth rate =g of Valuation of AirThread Connections Case study Valuation of AirThread Connections In early December 2007, Robert...

Q:

Use frontier orbital analysis to decide whether the dimerization of 1,3-butadiene shown here is allowed or forbidden. 2H2C-CH-CH-CH2- s heat

Q:

1. Figure 1 represents a pipe network in a small community. Water enters the pipe network at junction A from a water storage tower and supplies it to the community at point B, C, D and E. The pipe...

Q:

A recliner chair that sells for $ 1 , 4 5 3 1 , is marked up 5 5 % of the selling price. a . What is the markup? b . What is the cost ?

Q:

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

Q:

=+5. Did you know about Starbuckss involvement in this issue and the Fairtrade products the company sells? Do you think this is something the company should publicize? Is there any downside to doing...

Q:

=+1. From a CSR perspective, what is your impression of Citigroup? Should it share responsibility for the projects for which its funds are used?

Q:

=+What is the extent of the market in the developed economies for products with ingredients that have been purchased in this way?