Small Businesses Financing Assignment

For Instructor’s Use only

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)

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.