A simple version of the venture capital method involves estimating the _____, the expected return in the harvest year, the post-money valuation, and the pre-money valuation.
A) forecast period
B) discount rate
C) terminal value
D) book value
E) liquidation value

Question

A simple version of the venture capital method involves estimating the _____, the expected return in the harvest year, the post-money valuation, and the pre-money valuation.
A) forecast period
B) discount rate
C) terminal value
D) book value
E) liquidation value

Quizplus · Accepted Answer

The terminal value is estimated in the venture capital method to determine the expected return at the end of the investment period, which is crucial for calculating the post-money and pre-money valuations.

A Simple Version of the Venture Capital Method Involves Estimating the _____