Module 6 Discussion
Read chapter 11 in the class text and respond to the following:
1. What is meant by “finding the value of a venture’s assets is the same as finding the value of a venture’s debt plus equity? Be specific with your response to this question. Provide details and be focused with your discussion.
2. How would one expect P/E ratios to vary with a venture’s risk and growth opportunities? Provide details and be focused with your discussion.
3. State and describe two important motives for having an equity component in employee compensation. Provide details and be focused with your discussion.