1. Self-Reflection: Reference is made to the article, “How to Write a Great Business Plan”:
• Identify 2 main lessons that you-learned from this article, and then briefly explain how each of those 2 lessons will help you grow in your entrepreneurship or intrapreneurship venture.
2. Valuation: Case 9.2 (in your textbook, pp. 309-313) “Valuing REACH Health Inc.”
• Calculate the value of REACH Health Inc using the multiples method—use Sales multiples and EBITDA multiples only.
• Calculate the value of REACH Health Inc using the Discounted Free Cash Flow Method,
• What is the value of REACH Health, Inc.?
3. Exit and Harvest: Case 10.2 (in your textbook, pp. 338-340) “The Sale of Hotmail”
• Why do young rapidly growing firms like Hotmail seek funding from Venture Capital firms rather than from a bank or from the owners’ savings?
• Why did the founders of JavaSoft accept the original investment from DFJ rather than the investment from Asian investors that implied a higher firm value?
· Why might DFJ have included the provision that one of the founder’s fathers must also invest
$15,000?
· What is the advantage of funding a young firm like Hotmail in stages rather than all at once?
• Why did Microsoft buy Hotmail?
4. Financing: Case 3.3 (in your textbook, pp. 309-313) “Coos Bay Organic Products Inc: Financing Compost.”
• Evaluate the various options for financing.
• What process should Brooks follow to get the startup financing?