Week 13 Reading Reflection

1. The biggest surprise that I had while reading Chapter 14 was that your emotions can actually effect how valuable you believe your company is. I always thought that value was only in terms of numbers or dollars, but never considered the idea of emotional bias so this was extremely surprising and interesting to me.

2. A part of the reading that was confusing to me was the concept of control factor. I understand that you want to have as much control as possible in a company, however, I didn't understand what the author meant when they mentioned that even if you know you are investing in 49% of a company, it depends on who owns the other 51% to determine how valuable this investment truly is. Again, I always think in numbers and to me 49% seems like it should just be 49% despite the other investors.

3. Two question I would ask the author are

1. Why are there so many valuation methods that exist and how do you determine which one is the most ideal?
2. What is an example of how a letter of intent can be non-binding and binding at the same time?

4. There wasn't anything I read this week that I thought the author was wrong about.