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17. The venture capital firm's founders believe they can sell this firm for $70 million in 7 years. They need 58 million in capital now
17. The venture capital firm's founders believe they can sell this firm for $70 million in 7 years. They need 58 million in capital now and the entrepreneurs wish to hold 1 million shares. The private equity firm decides that given the high risk of the firm, a discount rate of 30% is appropriate. a. What is the post-money valuation? b. What is the pre-money valuation? c. What is the ownership fraction for the private equity firm? d. What is the number of share for the private equity firm? e. What is the stock price per share
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