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6 part question Question 1 1 pts Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to
6 part question
Question 1 1 pts Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio: Comparable Companies Ticker Symbol Price/Sales Starbucks SBUX 4.95 Darden Restaurants DRI 2.46 Yum Brands YUM 6.15 McDonald's Corporation MCD 8.37 $10,044,000 $6,579,000 $7,380,000 O $1,200,000 Question 2 1 pts Because this investment is very risky, you want to earn a return of at least 40% per year on your investment. What is the Post-Money Valuation? $1,200,000 $6,579,000 $3,356,632.65 O $1,712,567.68 Question 3 1 pts What is the pre-money valuation? $1,112,568 $600,000 $2,756,632.65 $1,200,000 Question 4 1 pts What is your venture capital firm's desired fraction of ownership in the firm? 25.09% O 10.59% 35.04% 40% Question 5 1 pts Suppose that the founders want 150,000 shares. How many shares would your venture capital want? 50,240 100,000 80,894 50,000 Question 6 1 pts What is the value per share? O $7.42 O $12 $6 $35.02 Question 1 1 pts Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio: Comparable Companies Ticker Symbol Price/Sales Starbucks SBUX 4.95 Darden Restaurants DRI 2.46 Yum Brands YUM 6.15 McDonald's Corporation MCD 8.37 $10,044,000 $6,579,000 $7,380,000 O $1,200,000 Question 2 1 pts Because this investment is very risky, you want to earn a return of at least 40% per year on your investment. What is the Post-Money Valuation? $1,200,000 $6,579,000 $3,356,632.65 O $1,712,567.68 Question 3 1 pts What is the pre-money valuation? $1,112,568 $600,000 $2,756,632.65 $1,200,000 Question 4 1 pts What is your venture capital firm's desired fraction of ownership in the firm? 25.09% O 10.59% 35.04% 40% Question 5 1 pts Suppose that the founders want 150,000 shares. How many shares would your venture capital want? 50,240 100,000 80,894 50,000 Question 6 1 pts What is the value per share? O $7.42 O $12 $6 $35.02Step by Step Solution
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