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VCPE_mini quiz

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

What is EBITDA

a)

E Before Investment, Taxes, Depreciation, and Amortization

b)

Earnings Before Interest, Taxes, Depreciation, and Amortization

c)

Profit after paying taxes and expenses

d)

Earnings Before Interest, Taxes, Depreciation, and Annual Expenses

2.

Firm or startup's valuation should produce one final valuation figure

a)

True

b)

False

3.

Should it be okay if valuation is based on assumptions related to the development of a unique and sustainable business model of a firm?

a)

No

b)

Yes

4.

What is IRR?

a)

Investment rate of return

b)

Investment rate of revaluation

c)

Internal rate of return

d)

Internal rate of revaluation

5.

As start-up companies are typically funded entirely by equity, the EV and the equity value of these companies are broadly the same.

a)

True

b)

False

c)

Inconclusive

d)

I donot know

6.

Which of the following is not an element of a balance sheet?

a)

Current asset

b)

Equity

c)

Sale revenues

d)

Dividend

7.

What is DCF in valuation ?

a)

Dividend cash flow

b)

Debt for continued flow

c)

Debitor-led cash flow

d)

Discounted cash flow

8.

Valuations at a start-up often increase at a non-linear rate, meaning that founders and existing investors give up a proportionally smaller percentage of equity per dollar of new money raised in later rounds.

a)

False

b)

true

9.

Relevant valuation method for mature-profitable companies is

a)

EBITDA multiple

b)

Market multiple

c)

Berkus method

d)

IRR method

10.

Have you watched any startup-theme movie? If yes, type the title of the movie below

(a)