7. Bill Haskell, CEO of Free Surf.com, wants to raise $4M in Series A funding for his company. Haskell projects that FreeSurf will reach $10M in net income in five years. a. If comparable companies trade at 20% their P/E ratio, then what percent ownership should Haskell offer a VC today in return for a $4M investment in FreeSurf assuming the VC's target return is 50%? b. Suppose the company has 1M shares outstanding before the VC invests. How many shares should the VC ask for? What is his price per share? 8. This year DuckDuckGo Inc., had the following: EBIT: -5M Revenues: 15M Debt: 10M Use comparables analysis to value DuckDuckGo, given the following comparables' data. Altavista Ask Jeeves P/E Ratio 18 20 100M 30M 75M 10M Revenues EBIT Enterprise Value $508M $35M Debt 100 15