From Which of the Following Does a Venture Capital Company

question 16

Multiple Choice

From which of the following does a venture capital company usually achieve its greatest return?

• A) The dividends distributed by the company it has bought into.
• B) Capital gains upon the sale of the company it has invested in.
• C) Through the acquisition of buy-in capital (MBI).
• D) From the spread it achieves by borrowing at a lower interest rate than it lends to the company it has invested in.
• E) By hedging its investment risk in the company it has acquired through the use of derivatives.

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