Question: =10. Using the information below, please answer the following questions below about Surelock Homes, a start-up company. In your analysis, assume the valuation date is

=10. Using the information below, please answer the following questions below about Surelock Homes, a start-up company. In your analysis, assume the valuation date is the end of year 6, projected earnings in year 6 will be $12 million, and an appropriate price-toearnings ratio for valuing these earnings is 20 times.

In addition, the company wants to reserve 15 percent of the shares outstanding at time 6 for employee bonuses and options.

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