Question
A company will have cash flows as follows earnings year 0 year 1 year 2 year 3 year 4 year 5 million dolars -2 5
A company will have cash flows as follows
| earnings | year 0 | year 1 | year 2 | year 3 | year 4 | year 5 |
| million dolars | -2 | 5 | 5 | 5 | 5 | 100 |
If a Venture Capital invested $2,000,000 in a project will stop investing in fifth, how many new shares will the Venture Capital receive? What is the price of the new shares? (Assuming discount rate = 10%)
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Acquisition Finance
Authors: Tom Speechley
2nd Edition
1780436599, 978-1780436593
