1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
I thought the most interesting part of this chapter was the different valuation methods. I really enjoyed reading the key points as it pointed out the weaknesses to certain valuation methods compared to others and when each of them are used. The topic that most surprised me was the amount of research that must be done in order to properly value a company when it is looking to be purchased, such as the condition of the equipment that a company owns. I feel like this would be rather tricky when dealing with the purchase of a failing residential solar company as most of their assets are on top of a lot of houses.
2) Identify at least one part of the reading that was confusing to you.
I didn't quite understand the difference between the adjusted tangible and the liquidation value method of venture valuation. Both seem to subtract liabilities from assets.
3) If you were able to ask two questions to the author, what would you ask? Why?
I would ask the author about the difference between adjusted tangible venture valuation and liquidation venture valuation as they both seem the same to me. I would also ask the author what type of valuation would be best when trying to determine what a company's private stock price should be.
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
I didn't disagree with anything in this chapter, much of it was defining words on a spreadsheet.
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