Test: Financial Forecasting Test
|Why would an investor be interested in a company's pre-money valuation?|
Knowing the valuation gives the investor the ability to calculate net income.
Knowing the valuation helps the investor put his investment in perspective and understand how it is relative to the capital already in the company.
Knowing the valuation allows the investor to secretly calculate how much he can expect in return.
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The investor is required by law to ask for the pre-money valuation.