Question

a "post money" valuation differs from a "pre money" valuation by the cost of financial capital: True or False

Answer 1

Ans : Difference between " Post Money " and " Pre Money " Valuation

Pre Money Valuation is the valuation done for the  company before it receives investment.Whereas Post Money Valuation is Valuation done for the company after it receives investment. Thus Post Money Valuation of the Company will be Pre-Money Valuation + New Investments.

Lets take for example if an investor wants to invest in a company and he wants to know what is the value of the company before its investment then such valuation is Pre-Money Valuation.
Now, if the investor wants to know value of the company after its investments then in such case valuation will also include investor's investment and such valuation is Post Money Valuation.

Thus a " post money " valuation differs from a " pre money " valuation by the cost of financial capital is a False statement.