WorksheetsIED Raising Capital
Total questions: 4
Worksheet time: 80secs
Name
Class
Date
1.
How much equity do you give for debt financing:
a)
0%
b)
1-5%
c)
6-10%
d)
Negotiable > 10%
2.
What is not an advantage of convertible debt:
a)
No equity loss
b)
Delay the equity until a later day
c)
Lower legal fees
d)
Transaction costs are lower
3.
Which is not correct for Liquidation preferences:
a)
Preference means earlier investors are first to get money during liquidation
b)
Common stockholders have higher priority during liquidation
c)
Preferred shareholders can get more than 1X of their investment
d)
Investors can choose between fully participating, non-participating and in-between capped participation
4.
Cap table means:
a)
Capital investments list
b)
Market capitalization of the company
c)
List of VC’s investments
d)
% ownership of all investors
100 %
