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CA Final Valuation (Finance) — practice questions — page 3

Explore 71 free Valuation (Finance) questions in CA Final Strategicfinancialmanagement. Open each question or exercise to read its content, reference answers and available explanation.

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Valuation (Finance) questions and exercises with answers

Showing questions 61–71 of 71.

A startup is valued at 45 crore pre-money and receives 15 crore. The investor's stake is:Read the answer and worked solution →An investor pays 20 crore for a company whose post-money valuation is 80 crore. Pre-money is:Read the answer and worked solution →Founders hold 40 shares. An investor puts in 4 crore for 10 new shares. Post-money valuation is:Read the answer and worked solution →Founders own 100 shares. A new investor gets 25 new shares for 5 crore. Pre-money is:Read the answer and worked solution →Post-money is 90 crore with 150 shares outstanding. The value per share is:Read the answer and worked solution →Founders hold 100 of 125 shares after a round. Their stake is:Read the answer and worked solution →What happens to existing holders' ownership with each new financing round?Read the answer and worked solution →Series A priced shares at 500 and Series B at 650. Series B is an:Read the answer and worked solution →A new round priced below the previous round's share price is a:Read the answer and worked solution →Down rounds were common after which events?Read the answer and worked solution →Startups raise money in several rounds rather than one lump sum mainly to:Read the answer and worked solution →

Worked practice questions

A startup is valued at 45 crore pre-money and receives 15 crore. The investor's stake is:

  1. 15 percent
  2. 20 percent
  3. 25 percent
  4. 33 percent
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Correct answer: C. 25 percent

Post-money is 45 + 15 = 60 crore, so the investor owns 15/60 = 25 percent.

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An investor pays 20 crore for a company whose post-money valuation is 80 crore. Pre-money is:

  1. 60 crore
  2. 100 crore
  3. 80 crore
  4. 40 crore
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Correct answer: A. 60 crore

Pre-money equals post-money minus the investment, 80 - 20 = 60 crore.

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Founders hold 40 shares. An investor puts in 4 crore for 10 new shares. Post-money valuation is:

  1. 16 crore
  2. 20 crore
  3. 24 crore
  4. 40 crore
Show answer and solution

Correct answer: B. 20 crore

Post-money = 4 x (50 total shares / 10 new shares) = 20 crore, so pre-money is 16 crore.

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More Strategicfinancialmanagement topics

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