Chat with us, powered by LiveChat Please Follow the instructions carefully. No word count on the first question. Complete the calcul - STUDENT SOLUTION USA

Please Follow the instructions carefully.

No word count on the first question.

Complete the calculations asked for for the second

DEADLINE: Wed, 8 2021 at 11:00 PM

College of Administrative and Financial Sciences

Assignment 2

Course Name: Small Business Financing

Student’s Name:

Course Code: FIN421

Student’s ID Number:

Semester: 1st

CRN: 14858

Academic Year: 1442-1443 H


Deadline: 9 December, 2021 @23:59pm

For Instructor’s Use only

Instructor’s Name:

Students’ Grade: Marks Obtained/ 5

Level of Marks: High/Middle/Low

PLEASE READ THEM CAREFULLY

· This assignment is an individual assignment.

· The Assignment must be submitted only in WORD format via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented. This also includes filling your information on the cover page. Submissions without this cover page will NOT be accepted.

· Students must mention question part clearly in their answer.

· Late submitted assignments will NOT be accepted at any circumstances.

· Avoid plagiarism, the work should be in your own words, copying from students will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font.

Q1: Pricing and exit strategy are the main instruments used by Private Equity; explain how do PE implement them on developing countries and whether there are some difficulties they face on pricing & exit strategy? What kind of exit strategy do you think is common? (2points)

Q1: Assume an insurance company invest in different Venture Capitalist and has these Cash flows as follow on the table (3 points)

2015

2016

2017

2018

2019

2020

2021

2022

2023

IRR

A

-200 million SAR

50 million SAR

0 SAR

60 million SAR

-40 million SAR

100 million SAR

0

90 million SAR

80 million SAR

B

-100 million SAR

0

0

0

-50 million SAR

0

0

-25 million SAR

400 million SAR

C

-300 million SAR

50 million SAR

10 million SAR

0

-50 million SAR

200 million SAR

50 million SAR

0

50 million SAR

D

-50 million SAR

10 million SAR

10 million SAR

10 million SAR

10 million SAR

10 million SAR

10 million SAR

10 million SAR

10 million SAR

Pooled

A, B, C, D are different VC this insurance company invest in.

a- Calculate each venture capitalist’s IRR.

b- Calculate Average IRR.

c- Calculate pooled cash flow and its IRR

d- Analyze B and D based on what you see on their CF and IRR.

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