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Arriesgado College Foundation, Inc

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ARRIESGADO COLLEGE FOUNDATION, INC

201 Bonifacio St., Tagum City

Venture Capital
Semi-Final Examination
Charly Mint A. Israel

Name:____________________________________ Date:_____________

I. Problem Solving. Please provide a clear solution in each problem.

A. At the beginning of June 2016, Bitter Ventures has 25,000 shares at P 56 per share.
The venture has earned P 50,000 and the price per share at the end of the period P 55.
Compute for the periodic return. (5 points)

Answer =

B. Supposed the following periodic returns :

June 2017 = Refer to your answer at A

July 2017 = 2.15%

August 2017 = -1.25%

September 2017 = 1.50%

Compute for Compound Return. (5 points)

Answer=

C. The Medison insurance plan has invested in Hoping VC funds. The director of the
insurance plan is preparing his annual report to the Medison board of directors. The
summary is a follows:

Year 2012 2013 2014


Beginning value P 5,000,000 P 3,950,000 P 4,750,000

New investments 250,000 300,000 500,000

Ending Value(before 5,500,000 6,300,000 5,000,000


distribution)

Distribution to LPs 1,000,000 1,000,000 1,000,000

Distribution to GPs 300,000 300,000 300,000

Management Fees 250,000 250,000 250,000


Compute for the following:

Year 2012 2013 2014


Gross Return (3 pts each)

Net Return (3 pts each)

C-2. Compute for Gross compound Return (5 points) Answer =

C-3. Compute for Net Compound Return ( 5 points) Answer =

D. Moveon pension plan has the following data:

Year 2013 2014 2015


Gross return -.90% 1.10% 3.50%
Net Return -1.05% -.95% 3.00%
D-1. Compute for the Gross compound return (5 points) Answer =

D-2. Compute for the Net Compound return. (5 points) Answer =

E. Supply the missing data of Cash flows for X&Ys Fund

Year 1 Year 2 Year 3 Year 4 Year 5

Investments P 15M P 23M P 30M 0


Carried interest 0 0 0 0 0

Distributions to 0 0 P 50M P 37M P 45M


LPs

Cumulative 0 0 P 50M P 132M


distributions to
LPs

Port Value after P 20M P 40M P 75M P 100M P112M


capital

Management P 2M P 2M P 2.5M P 2.25M


Fee

Net Cash flow P 29.75M P 42M

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