Question

Explain why an entrepreneur may want to lower the valuation of her company due to COVID-19.

Explain why an entrepreneur may want to lower the valuation of her company due to COVID-19.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

An entrepreneur may want to lower the valuation of her company due to covid-19 because-

A. It will offer her good discounting of risk exposure arising due to covid-19.

B.it can also offer the promoters of the company to acquire more number of shares through the share buyback program

C. It can also help the company in discounting any abnormal events proactively and be prepared for adjustment for the same

D.it reflects an act of the company of being conservative in nature and discounting for the macro risk which could arise due to covid-19

E. It is also helpful in gaining value perspective because it will help the company to remain realistic and not overvalued, in such adverse economic scenario.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In the midst of Covid-19 pandemic, firms cut production due to lockdown. How will firms’ cutting...
In the midst of Covid-19 pandemic, firms cut production due to lockdown. How will firms’ cutting of production affect employment? Explain you answer using an appropriate diagram. Suppose firms do not want to lay off workers, explain how firms decision may affect employment and wages in the labour market. Explain labour market using an appropriate diagram.   
Answer the following questions related to the epidemiology of COVID-19: Explain why it is concerning that...
Answer the following questions related to the epidemiology of COVID-19: Explain why it is concerning that public health officials and scientists are now saying that COVID-19 is capable of spreading via both droplet and aerosol transmission. Be sure to define what both of these transmission routes are. Explain why the current COVID-19 global health crisis is considered a pandemic and not an epidemic. During the week of 11/14 to 11/21 Maryland saw a total number of ~15,883 COVID-19 cases. What...
Each of the following taxpayers is unable to work (or telework) due to COVID-19-related circumstances. Which...
Each of the following taxpayers is unable to work (or telework) due to COVID-19-related circumstances. Which of the following statements is FALSE? Jennifer is unable to work because her son's daycare provider is closed due to COVID-19. Jennifer must stay home to care for him. Jennifer is eligible for 10 days of paid sick leave at 2/3 her normal pay rate, followed by up to 10 weeks of paid family leave at 2/3 her normal pay rate. Elizabeth is unable...
Use an example of a negative externality arising due to COVID 19 to explain what is...
Use an example of a negative externality arising due to COVID 19 to explain what is meant by a negative externality and how it affects the efficiency of markets. Draw a diagram to illustrate your answer.
With the economic uncertainty and job insecurity due to the COVID-19 crisis, many consumers may increase...
With the economic uncertainty and job insecurity due to the COVID-19 crisis, many consumers may increase their saving as a precautionary measure. Explain in detail the predicted long-run impact of an increase in national saving on the domestic interest rate, net capital outflow, supply and demand of domestic currency and exchange rate in a large open economy, holding other factors constant. Explain your answer clearly in words. Do not provide diagrams. (125 words maximum)
Explain why COVID-19 is classified as a [+]ssRNA virus. Explain the meaning of each term in...
Explain why COVID-19 is classified as a [+]ssRNA virus. Explain the meaning of each term in the classification: [+], ss, and RNA.
what are the central issues affecting disney company due to covid-19? make recommendations based on an...
what are the central issues affecting disney company due to covid-19? make recommendations based on an internal analysis.
what are the central issues affecting disney company due to covid-19? make recommendation based on an...
what are the central issues affecting disney company due to covid-19? make recommendation based on an internal analysis.
When an entrepreneur is considering selling his or her business, the buyer may be more interested...
When an entrepreneur is considering selling his or her business, the buyer may be more interested in giving the seller stock in their business than in giving cash. Why?
Evaluate how and why Australian banks’ credit risk exposure may be affected by the current COVID-19...
Evaluate how and why Australian banks’ credit risk exposure may be affected by the current COVID-19 pandemic in the foreseeable future. Comment on whether you believe Australian banks have the resilience to weather this challenging episode and why or why not. Your answers should be relevant to banks’ credit risk.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT