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Financial Forecasting MCQs

Why would an investor be interested in a company's pre-money valuation?

The investor is required by law to ask for the pre-money valuation.

Knowing the valuation allows the investor to secretly calculate how much he can expect in return.

Knowing the valuation gives the investor the ability to calculate net income.

Answer

Correct Answer: Knowing the valuation allows the investor to secretly calculate how much he can expect in return.

Explanation:

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